Required: -a. Compute the throughput time for each month. -b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. 3-a. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE. 3-b. Refer to the inspection time, process time, and so forth, given for month 4. Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time and MCE. Complete this question by entering your answers in the tabs below. Required 1 Required 3 1-a. Compute the throughput time for each month. 1-b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.) Throughput Time Manufacturing Cycle Efficiency (MCE) Delivery Cycle Time Month 1 days 0.3 % 18.0 days Month 2 days % 21.0 days Month 3 days % 23.0 days Month 4 41.0 days % 26.0 days < Required 1 Required 3 > Show less 6.4 Connect: Exercises and Problems 10 Saved 2.93 points eBook Problem 12-15 (Algo) Internal Business Process Performance Measures [LO12-3] Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months: Print References Mc Graw Hill Month 2 3 Quality control measures: Number of defects Number of warranty claims Number of customer complaints Material control measures: Purchase order lead time Machine performance measures: 200 178 139 61 54 45 42 117 111 94 73 8 days 7 days 5 days Scrap as a percent of total cost 1% 1% 2% 4 days 3% Machine downtime as a percentage of availability 4% 5% 5% 8% Use as a percentage of availability 94% 91% 88% 84% Setup time (hours) 8 10 11 12 Delivery performance measures: Throughput time ? ? ? ? Manufacturing cycle efficiency (MCE) ? ? ? ? Delivery cycle time ? ? ? Percentage of on-time deliveries 95% 94% 91% ? 88% The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures: Average per Month (in days) 1 2 3 4 Wait time per order before start of production 10.0 12.0 13.0 15.0 Inspection time per unit 0.7 0.6 0.6 0.6 Process time per unit 2.8 2.7 2.6 1.1 Queue time per unit 4.1 5.1 6.2 8.6 Move time per unit 0.4 0.6 0.6 0.7 Required: 1-a. Compute the throughput time for each month. -b. Compute the manufacturing cycle efficiency (MCE) for each month. 1-c. Compute the delivery cycle time for each month. < Prev 10 of 29 Next > Help Save & Exit Submit Check my work Problem 13-19 (Algo) Dropping or Retaining a Segment [LO13-2] Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses. Net operating income (loss) Total $ 933,000 469,000 464,000 Home Nursing $270,000 114,000 156,000 Meals On Wheels $ 409,000 199,000 210,000 House- keeping $ 254,000 156,000 98,000 69,900 8,600 40,600 20,700 43,000 20,600 7,200 15,200 114,900 40,100 38,500 36,300 186,600 54,000 81,800 50,800 414,400 123, 300 168,100 123,000 $ 49,600 $ 32,700 $ 41,900 $ (25,000) Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $49,600 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: -a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? -b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management assessing the long-run financial viability of the various services? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? < Prev 26 of 29 Next Problem 13-22 (Algo) Special Order Decisions [LO13-4] Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 25 6 Total $ 750,000 180,000 3 7 90,000 210,000 2 6 60,000 180,000 $ 49 $ 1,470,000 The Rets normally sell for $54 each. Fixed manufacturing overhead is $210,000 per year within the range of 23,000 through 30,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 23,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 7,000 units. This machine would cost $14,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 23,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 7,000 Rets. The Army would reimburse Polaski for all of the variable and fixed production costs assigned to the units by the company's absorption costing system, plus it would pay an additional fee of $1.20 per unit. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 30,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 7,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order? 1. Financial advantage 2. Financial advantage $ 1 3. Financial (disadvantage)