Chapter 12 DataSpan, Inc. DataSpan, Incorporated, automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations. The following average times have been logged over the last four months: Average per Month (in days) 1 2 3 4 Move time per unit 0.7 0.4 0.5 0.5 Process time per unit 3 2.8 2.7 2.5 Wait time per order before start 28 30. of production 23 25. 2 3 Queue time per unit 4.2 4.7 5.3 6Inspection time per unit 0.9 1.1 1.1 0.9 Management has asked for your help in computing throughput time, delivery cycle time. and MCE. Please compute each of these metrics and ll in the table below. (Please round NICE to the nearest ercent.} Throughput time (days) 4 Delivery cycle time {days} Manufacturing cycle efficienc {NICE} Percentage of (In-time deliveries 92% 87% 84% 31% Total sales (units) 2,060 1.972 1.871 1,800 Appendix 6A Aldean Company Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $130,000 in operating assets to produce and sell 13,000 units. Its required return on investment (ROI) in its operating assets is 18%. The accounting department has provided cost estimates for the new product as shown below: Per Unit | Direct materials $7.40 Total Direct labor $5.40 Variable manufacturing overhead $2.40 Fixed manufacturing overhead $96,350 Variable selling and administrative $1 40 ex enses ' Fixed selling and administrative expenses $46335 1} What is the unit product cost for the new product? 2} What is the markup percentage on absorption cost for the new product? 3} What selling price would the company establish for its new product using a markup percentage on absorption cost? (Round the final answer to 2 decimal places.) Always Candy Corp. Alway Candy Corporation is implementing a target costing approach for its latest new product, the "Peanut Butter Blast" candy bar. The following information relates to the new candy bar: | Projected selling price per candy bar $0.90 | Expected annual sales (in units} of candy bars 40'000 Requrred Investment In additional $140300 a 55 His Desired return on investment 1} Based on this information, what is Alway's target cost per bar for the Peanut Butter Blast candy bar