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Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 183,000 laptops per quarter but currently produces 73,200 units. The
Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 183,000 laptops per quarter but currently produces 73,200 units. The conversion cost per quarter is $8,052,000. There are 61,000 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 8 minutes of move time, 19 minutes of wait time, and 5 minutes of rework time. (All work is done by cell workers.)
Required:
- Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). If required, round to one decimal place.
- Compute the ideal and actual amounts of conversion cost assigned per laptop. If required, round your answers to the nearest cent.
- Calculate MCE. If required, round your answer to two decimal places.
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