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lynn Company has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell,
lynn 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 guitar pickups, has four operations: machining, finishing, assembly, and testing.
For the coming year, the pickup cell has the following budgeted costs and cell time (both at theoretical capacity):
Cell time:
8,000 hours
Theoretical output:
60,000 pickups
During the year, the following actual results were obtained:
Actual cell time:
8,000 hours
Actual output:
50,000 pickups
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