Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customers instrument assembly. The data that follow concern only the eCar lean cell.

For the year, Dashboard Inc. budgeted the following costs for the eCar production cell:

1	Conversion Cost Categories	Budget
2	Labor	$657,000.00
3	Supplies	41,000.00
4	Utilities	30,000.00
5	Total	$728,000.00

Dashboard Inc. plans 2,800 hours of production for the eCar cell for the year. The materials cost is $130 per instrument assembly. Each assembly requires 15 minutes of cell assembly time. There was no April 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.

The following summary events took place in the eCar cell during April:

a.	Electronic parts and wiring were purchased to produce 8,400 instrument assemblies in April.
b.	Conversion costs were applied for the production of 8,200 units in April.
c.	8,100 units were started, completed, and transferred to finished goods in April.
d.	8,020 units were shipped to customers at a price of $410 per unit.

Required:

1.

Determine the budgeted cell conversion cost per hour.

2.

Determine the budgeted cell conversion cost per unit. If required, round your answer to the nearest whole dollar.

3.

Journalize the summary transactions (a) through (d). Refer to the Chart of Accounts for exact wording of account titles.

4.

Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.

5.

How does the accounting in a lean environment differ from traditional accounting?

The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows:

1	Activities	Activity Cost
2	Patient registration	$6,100.00
3	Verifying patient information	9,500.00
4	Assigning patients	12,900.00
5	Searching/waiting for doctor	8,000.00
6	Doctor appt	4,600.00
7	Waiting for transport	17,500.00
8	Transporting patients	15,800.00
9	Verifying lab orders	14,300.00
10	Searching for equipment	7,900.00
11	Incorrect labs	12,900.00
12	Lab tests	36,600.00
13	Counting supplies	33,200.00
14	Looking for supplies	6,900.00
15	Staff training	3,800.00
16	Total	$190,000.00

Required:

1.

Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities.

2.

Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities.*

3.

Determine the percentages of the total ER costs that are value- and non-value-added.*

4.

Interpret the information.

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.