Cycle Time, Velocity, Product Costing Goldman Company has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell, dedicated to the production of telescopes, has four operations: machining, finishing, assembly, and qualifying (testing). For the coming year, the telescope cell has the following budgeted costs and cell time (both at theoretical capacity): Budgeted conversion costs $9,500,000 Budgeted raw materials $8,000,000 Cell time 12,000 hours Theoretical output 96,000 telescopes During the year, the following actual results were obtained: Actual conversion costs $9,500,000 Actual materials $6.400,000 Actual cell time 12,000 hours Actual output 90,000 telescopes Required: 1. Compute the velocity (number of telescopes per hour) that the cell can theoretically achieve. Now, compute the theoretical cycle time (number of hours or minutes per telescope) that it takes to produce one telescope. Round your answers to two decimal places. Theoretical velocity telescopes per hour 1. Compute the velocity (number of telescopes per hour) that the cell can theoretically achieve. Now, compute the theoretical cycle time (number of hours or minutes per telescope) that it takes to produce one telescope. Round your answers to two decimal places. Theoretical velocity telescopes per hour Theoretical cycle time minutes per telescope 2. Compute the actual velocity and the actual cycle time. Round your answers to two decimal places. Actual velocity telescopes per hour Actual cycle time minutes per telescope 3. Conceptual Connection: Compute the budgeted conversion costs per minute. Using this rate, compute the conversion costs per telescope if theoretical output is achieved. Using this measure, compute the conversion costs per telescope for actual output. Round your answers to the nearest cent Budgeted conversion costs S per minute Theoretical conversion costs per telescope S 5 Actual conversion costs per telescope Does this product costing approach provide an incentive for the cell manager to reduce cycle time? Explain. Ye By reducing cycle time, the cost per unit can be reduced. V