Posted: May 3rd, 2016
2. Gibson, Inc., has developed ideal standards for four activities: labor, materials, inspection, and receiving.
Information is as follows:
Activity Activity Driver SQ AQ SP
Labor Hours 500 550 $ 32
Materials Pounds 2,000 2,500 48
Inspection Inspection hours 0 375 22
Receiving Orders 60 75 800
The actual prices paid per unit of each activity driver were equal to the standard prices.
Required:
Complete the following cost report.
Activity Value-Added Non-value-Added Actual
Labor $_____________ $_____________ $____________
Materials _____________ _____________ ____________
Inspection _____________ _____________ ____________
Receiving _____________ _____________ ____________
Totals $_____________ $_____________ $____________
3 Marshek Industries has the theoretical capability to produce 119,000 units per month but currently produces 102,000 units. The conversion cost for the month is $3,750,000. There are 8,500 production hours available within the plant per month. In addition to processing time, to produce a unit takes 15 minutes of move time and 10 minutes of wait time.
Required:
1. Compute the theoretical and actual velocities per hour
2. Compute the theoretical and actual cycle times (minutes per unit produced)
3. Compute the MCE
Place an order in 3 easy steps. Takes less than 5 mins.