XX is aware that there is a learning effect for the production of one of its new products, but is unsure about the degree of learning. The following data relate to this product. Time taken to produce the first unit 28 direct labour hours Production to date 15 units Cumulative time taken to date 104 direct labour hours What is the percentage learning effect?

XX is aware that there is a learning effect for the production of one of its new products, but is unsure about the degree of learning. The following data relate to this product. Time taken to produce the first unit 28 direct labour hours Production to date 15 units Cumulative time taken to date 104 direct labour hours What is the percentage learning effect?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 14DQ: Assume you are the manager responsible for implementing a new service. The time to perform the...

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Assume you are the manager responsible for implementing a new service. The time to perform the service is subject to the learning curve. Would you prefer that the new service have a learning rate of 85 percent or 80 percent? Why?
1. Set up a table with columns for cumulative number of units, cumulative average time per unit in hours, and cumulative total in hours using the cumulative average time learning curve. Complete the table for 1,2,4, and 8 units. What is the cumulative total time in hours for 8 units? 2. Set up a table assuming an 80% cummulative avergae time learning curve. What is the cumulative total time in hours for 8 units? 3. What is the difference in variable cost of producing four units? (between the result using the 0.90 model and 0.80 model)
What I Know Before we begin this lesson, let us check first your prior knowledge on this module. After taking and checking this short test, take note of the items that you are not able to answer correctly and look for the right answer as you go through this module. Direction: Encircle the letter of the correct answer. 1. What type of cost includes product ingredients and materials? а. fixed b. revenue с. total d. variable 2. What type of cost includes the rental of space? а. fixed b. revenue c. total d. variable 3. What type of cost is the product of the price and the quantity sold? а. fixed b. revenue с. total d. variable 4. What concept is being described when the business will neither earn a profit nor suffer a loss? а. break-even b. loss с. profit d. summit 5. What type of analysis shows equal revenue and total cost? а. break-even b. cost of variable c. profit-loss d. volume of sales
Compute (a) cycle time, (b) value-added time, (c) non-value-added time, and (d) cycle efficiency using the following information for a manufacturer. Process time. 2.10 days Move time. 0.75 days Inspection time. 0.50 days Wait time. 0.15 days
SanaMolp management reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with solution pls
Patagania Company reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with complete set solution pls
(Chapter 4: Process Improvement) Consider a process consisting of three resources. Assume the demand rate is 8 units/hour. The process activities are always performed in the following sequence. Resource 1 has a processing time of 5 minutes per unit. Resource 2 has a processing time of 4 minutes per unit. Resource 3 has a processing time of 6 minutes per unit. Resource 1 is staffed by worker A and A's wage rate is $13 per hour. Resource 2 is staffed by worker B and B's wage rate is $13 per hour. Resource 3 is staffed by worker C and C's wage rate is $20 per hour. If one additional worker could be hired, to which resource should this worker be assigned? Calculate the new process capacity in units/hr. O Assign the new worker to Resource 3. The process capacity is 12 units per hour. O Assign the new worker to Resource 3. The process capacity is 10 units per hour. O Assign the new worker to Resource 1. The process capacity is 20 units per hour. O Assign the new worker to Resource 2. The…
For a typical order, assume the following times (in hours): storage time (in between processes),5.0; inspection time, 1.0; move time (from process to process), 2.0; and manufacturing (processing) time, 8.0. Given this information, what is the manufacturing cycle efficiency (%), roundedto 1 decimal place (e.g., 45.156% = 45.2%)? (Hint: Refer to Exhibit 14.14 and accompanyingdiscussion.)
Compute (a) manufacturing cycle time and (b) manufacturing cycle efficiency using the following information from a manufacturing company. Process time. 15.0 minutes Move time. 6.4 minutes Inspection time. 2.0 minutes Wait time. 36.6 minutes
Knowledge Check 01 In the cost formula (Y = a +bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter "a" refers to the estimated O total manufacturing overhead cost O total fixed manufacturing overhead cost O variable manufacturing overhead cost per unit of the allocation base O total amount of the allocation base
Assume the same information for Northern Defense as in Exercise 10-33, except that Northern Defense uses an 85% incremental unit-time learning model as a basis for predicting direct manufacturing labor-hours. (An 85% learning curve means b = -0.234465.) Q. Calculate the total variable costs of producing 2, 3, and 4 units.
If Toyota Motor Company receives an order on May 1, begins production on May 19, and ships the order on May 24 immediately following production, then what is the manufacturing cycle efficiency (MCE) ratio? (Enter your answer as a whole number.) Manufacturing cycle efficiency (MCE)atio %