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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 27
MCE
Thayn Company has provided the following information for one of its products for each hour of production:
Actual velocity: 80 units (per hour)
Move time: 18 minutes
Inspection time: 24 minutes
Rework time: 8 minutes
Required:
1. Calculate MCE. Comment on its significance.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times.
3. What if waste is reduced by one-half? What is the new MCE? New cycle time?
Thayn Company has provided the following information for one of its products for each hour of production:
Actual velocity: 80 units (per hour)
Move time: 18 minutes
Inspection time: 24 minutes
Rework time: 8 minutes
Required:
1. Calculate MCE. Comment on its significance.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times.
3. What if waste is reduced by one-half? What is the new MCE? New cycle time?
Explanation
Verified
Verified
1.
Calculation of MCE:
A value of 0....
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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