The Sunshine National Bank has a mortgage loan office with conversion cost of $73,950 per month. The five employees each work 170 hours per month. Last month, 1,020 loan applications were processed, but the staff believes that system improvements could lead to the processing of as many as 1,700 per month.
-Refer to the Figure.Calculate the following:
A. Conversion cost in minutes
B. Theoretical conversion cost per unit
C. Actual conversion cost per unit
D. How much more is the department spending per application than it should be if perfect efficiency could be attained?

Question

The Sunshine National Bank has a mortgage loan office with conversion cost of $73,950 per month. The five employees each work 170 hours per month. Last month, 1,020 loan applications were processed, but the staff believes that system improvements could lead to the processing of as many as 1,700 per month.
-Refer to the Figure.Calculate the following:
 A. Conversion cost in minutes
B. Theoretical conversion cost per unit
C. Actual conversion cost per unit
D. How much more is the department spending per application than it should be if perfect efficiency could be attained?

Quizplus · Accepted Answer

The Answer of The Sunshine National Bank has a mortgage loan office with conversion cost of $73,950 per month. The five employees each work 170 hours per month. Last month, 1,020 loan applications were processed, but the staff believes that system improvements could lead to the processing of as many as 1,700 per month.
-Refer to the Figure.Calculate the following:
 A. Conversion cost in minutes
B. Theoretical conversion cost per unit
C. Actual conversion cost per unit
D. How much more is the department spending per application than it should be if perfect efficiency could be attained?

The Sunshine National Bank Has a Mortgage Loan Office with Conversion