Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 11.00

theoretical cycle

The theoretical cycle time for a product is 48 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are $4,320,000 per year. The total labor minutes available are 960,000. During the year, the cell was able to produce 0.60 unit of the product per hour. Suppose also that production incentives exist to minimize unit product costs.

Required:
1. Compute the theoretical conversion cost per unit.
2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product).
3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 11:08 PM My Price 11.00

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