Cycle Time and Velocity, MCE

Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 245,000 laptops per quarter but currently produces 73,500 units. The conversion cost per quarter is $6,247,500. There are 61,250 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 11 minutes of move time, 19 minutes of wait time, and 4 minutes of rework time. (All work is done by cell workers.)

Required:

1. 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		Actual
Velocity	fill in the blank 1	laptops per hour	fill in the blank 2	laptops per hour
Cycle time	fill in the blank 3	minutes per laptop	fill in the blank 4	minutes per laptop

2. 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)	$fill in the blank 5
Assignment per unit (actual)	$fill in the blank 6

3. Calculate MCE. If required, round your answer to two decimal places. fill in the blank 7