cycle time conversion cost per unit mce lander parts inc produces various automobile 4143288

February 11, 2021/in Business Homework Help Online /by Joseph

Cycle Time, Conversion Cost per Unit, MCE Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is $9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). Theoretical velocity fuel pumps per hour Theoretical cycle time minutes per unit 2. Compute the ideal amount of conversion cost that will be assigned per sub assembly. $ per sub assembly (a). Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. $ per unit (b). What is the amount of conversion cost assigned to each unit if the time to produce a unit is decreased to 25 minutes? $ per unit Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. If required, round your answers to two decimal places. How much non-value-added time is being used? minutes How much is it costing per unit? $ per unit

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