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Mulhall, Inc., 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 mopeds, has four operations: machining, finishing, assembly, and qualifying (testing). The machining process is automated, using computers. In this process, the model's frame and engine are constructed. In finishing, the frame is sandblasted, buffed, and painted. In assembly, the frame and engine are assembled. Finally, each model is tested to ensure operational capability. For the coming year, the moped cell has the following budgeted costs and cell time (both at theoretical capacity): Budgeted conversion costs $5,387,520 Budgeted materials $18,565,000 Cell time 39,040 Theoretical output 19,520 models During the year, the following actual results were obtained: Actual conversion costs $5,387,520 Actual materials $4,074,000 Actual cell time 39,040 hours Actual output 14,640 models Required: 1. Compute the velocity (number of models per hour) that the cell can theoretically achieve. If required, round your answer to two decimal places. model per hour Now, compute the theoretical cycle time (number of minutes per model) that it takes to produce one model. In your calculations, do not round the theoretical velocity. minutes per model 2. Compute the actual velocity and the actual cycle time. If required, round your actual velocity answer to three decimal places. Actual velocity model per hour Actual cycle time minutes per model 3. Compute MCE. If required, round your answer to two decimal places. Comment on the efficiency of the operation. Very high Very low 4. Compute the budgeted conversion cost per minute. If required, round your answer to the nearest cent. per minute Using this rate, compute the conversion cost per model if theoretical output is achieved. per model $ Using this measure, compute the conversion cost per model for actual output. per model Does this product costing approach provide an incentive for the cell manager to reduce cycle time? Yes INO