Puma Manufacturing has a theoretical capability to produce 20,250 copiers per quarter but currently produces 10,125 copiers.The conversion cost per quarter is $4,860,000.There are 6,750 production hours available within the plant per quarter.In addition to the processing minutes per unit used,the production of copiers uses 12 minutes of move time,8 minutes of wait time,and 10 minutes of rework time.(All work is done by cell workers.)
Required:
a.Compute the theoretical and actual velocities per hour and the theoretical and actual cycle times (minutes per unit produced).
b.Compute the ideal and actual amounts of conversion cost assigned to each printer.
c.Calculate the MCE.
d.If poor employee training is the root cause of wait time and move time,develop an improvement strategy as a series of if-then statements that will reduce the conversion cost per printer.

Question

Quizplus · Accepted Answer

The Answer of Puma Manufacturing has a theoretical capability to produce 20,250 copiers per quarter but currently produces 10,125 copiers.The conversion cost per quarter is $4,860,000.There are 6,750 production hours available within the plant per quarter.In addition to the processing minutes per unit used,the production of copiers uses 12 minutes of move time,8 minutes of wait time,and 10 minutes of rework time.(All work is done by cell workers.)
Required:
a.Compute the theoretical and actual velocities per hour and the theoretical and actual cycle times (minutes per unit produced).
b.Compute the ideal and actual amounts of conversion cost assigned to each printer.
c.Calculate the MCE.
d.If poor employee training is the root cause of wait time and move time,develop an improvement strategy as a series of if-then statements that will reduce the conversion cost per printer.

Puma Manufacturing Has a Theoretical Capability to Produce 20,250 Copiers