Calculating Manufacturing Cycle Efficiency Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 196,000 units Productive hours in one quarter: 25,000 hours The actual cycle time for Indy Company is 7.65 minutes, and the theoretical cycle time is 6 minutes. Required: processing time and the amount of nonprocessing time. If required, round your answers to two decimal places. 1,176,00 X minutes Processing time Nonprocessing time 1,474,40 X minutes 2. Calculate the MCE. If required, round your answer to nearest whole number. 78.43 X % 1. Calculate the amount Feedback Check My Work 1. Processing Time 2. MCE = Processing Theoretical Cycle Time; Nonprocessing Time is the difference between Actual and Theoretical Cycle Time Time/Processing and Nonprocessing Time

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 18BEA: Use the following information for Brief Exercises 11-17and 11-18: Indy Company has the following...
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Calculating Manufacturing Cycle Efficiency
Indy Company has the following data for one of its manufacturing plants:
Maximum units produced in a quarter (3-month period): 250,000 units
Actual units produced in a quarter (3-month period): 196,000 units
Productive hours in one quarter: 25,000 hours
The actual cycle time for Indy Company is 7.65 minutes, and the theoretical cycle time is 6 minutes.
Required:
1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to two decimal places.
Processing time
1,176,00 X minutes
Nonprocessing time
1,474,40 X minutes
2. Calculate the MCE. If required, round your answer to nearest whole number.
78.43 X %
Feedback
Check My Work
1. Processing Time = Theoretical Cycle Time; Nonprocessing Time is the difference between Actual and Theoretical Cycle Time
2. MCE = Processing Time/Processing and Nonprocessing Time
Transcribed Image Text:Calculating Manufacturing Cycle Efficiency Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a quarter (3-month period): 196,000 units Productive hours in one quarter: 25,000 hours The actual cycle time for Indy Company is 7.65 minutes, and the theoretical cycle time is 6 minutes. Required: 1. Calculate the amount of processing time and the amount of nonprocessing time. If required, round your answers to two decimal places. Processing time 1,176,00 X minutes Nonprocessing time 1,474,40 X minutes 2. Calculate the MCE. If required, round your answer to nearest whole number. 78.43 X % Feedback Check My Work 1. Processing Time = Theoretical Cycle Time; Nonprocessing Time is the difference between Actual and Theoretical Cycle Time 2. MCE = Processing Time/Processing and Nonprocessing Time
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