Management at Lantana Inc. has decided to begin using throughput as a divisional performance measure. The Carolina Division is a job shop that carefully crafts furniture to customer specifications. The following first quarter information is available for the division: Good units started, completed, and sold 98,400 Total units completed 135,850 Total value-added hours of processing time 15,160 Total hours of divisional time 32,500 a. What is the division’s manufacturing cycle efficiency? ______% b. What is the division’s process productivity? (Round to one decimal point.) ______ units per hour c. What is the division’s process quality yield? (Round to one decimal point.) ______% d. What is the total hourly throughput? (Round to one decimal point.) ______ units per hour
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Management at Lantana Inc. has decided to begin using throughput as a divisional performance measure. The Carolina Division is a job shop that carefully crafts furniture to customer specifications. The following first quarter information is available for the division:
| Good units started, completed, and sold | 98,400 |
| Total units completed | 135,850 |
| Total value-added hours of processing time | 15,160 |
| Total hours of divisional time | 32,500 |
a. What is the division’s manufacturing cycle efficiency? ______%
b. What is the division’s process productivity? (Round to one decimal point.) ______ units per hour
c. What is the division’s process quality yield? (Round to one decimal point.) ______%
d. What is the total hourly throughput? (Round to one decimal point.) ______ units per hour
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