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Homework attached... accounting questions. Please let me know if you can help. 1. Cornerstone Exercise 15.1 Continuous Flow vs. Departmental Flow Manufacturing Anderson Company has
Homework attached... accounting questions. Please let me know if you can help.
1. Cornerstone Exercise 15.1 Continuous Flow vs. Departmental Flow Manufacturing Anderson Company has the following departmental manufacturing structure for one of its products: After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach: Required: 1. Calculate the total time it takes to produce a batch of 20 units using Anderson's traditional departmental structure. minutes 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? minutes Assuming the cell operates continuously, what is the production rate? units per hour Which process controls this production rate? 3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now? units per hour How long will it take to produce a batch of 20 units? minutes 2. Bottleneck Operation: Improving Production Flow Bienestar, Inc., implemented cellular manufacturing as recommended by a consultant. The production flow improved dramatically. However, the company was still faced with the competitive need to improve its cycle time so that the production rate is one bottle every three minutes (20 bottles per hour). The cell structure is shown below; the times above the process represents the time required to process one unit. 12 minutes 30 minutes 13 minutes 14 minutes Required: 1. How many units can the cell produce per hour (on a continuous running basis)? If required, round your answer to one decimal place. units per hour 2. How long does it take the cell to produce one unit, assuming the cell is producing on a continuous basis? minutes 3. Value-Stream Average Costing, ABC Costs as Benchmarks A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and 150 of the basic model (Model B). The resource consumption patterns are shown as follows: Cell manufacturing Engineering Testing Total Model A 2,400 min. 55 hrs. 110 hrs. Model B 7,200 min. 220 hrs. 242 hrs. Costs of ValueStream Activities $ 76,800 23,925 28,160 $128,885 Required: 1. Calculate the ABC product cost for Models A and B. If required, round your answers to the nearest cent. Product Cost Per Unit $ per unit Model A $ per unit Model B 2. Calculate the value-stream average product cost. If required, round your answer to the nearest cent. $ per unit Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.Step by Step Solution
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