MANUFACTURING CYCLE EFFICIENCY

Kurena Company provided the following information on one of its factories:

Maximum units produced in a quarter: 180,000 units

Actual units produced in a quarter: 112,500 units

Hours of production labour in a quarter: 30,000 hours

Theoretical cycle time: 10 minutes per unit

Actual cycle time: 16 minutes per unit

Required:

1. Calculate the amount of processing time per unit and the amount of time per unit.

2. Calculate the MCE.