Cycle Time and Velocity, MCE

Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce $258,000$

laptops per quarter but currently produces $77,400$ units. The conversion cost per quarter is $$7,353,000.$ There are

$64,500$ 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, $18$ minutes of wait time, and $6$ 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.

Theoretical

Velocity

Cycle time

$$ laptops per hour

$$ minutes per laptop

Actual

$$ laptops per hour

$$ minutes per laptop

Compute the ideal and actual amounts of conversion cost assigned per laptop. If required, round your

answers to the nearest cent.

Assignment per unit $($theoretically$)$

Assignment per unit $($actual$)$

Calculate MCE. If required, round your answer to two decimal places.

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Cycle time and velocity measure the time it takes for a firm to respond to such things as customer

orders, customer complaints, and the development of new products.