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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 19
MCE
Craig, Inc., has provided the following information for one of its products for each hour of production:
Actual velocity: 100 units (per hour)
Move time: 20 minutes
Inspection time: 18 minutes
Rework time: 12 minutes
Required:
1. Calculate MCE. Comment on its significance.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times.
3. What if waste is reduced by 40 percent? What is the new MCE? New cycle time?
Craig, Inc., has provided the following information for one of its products for each hour of production:
Actual velocity: 100 units (per hour)
Move time: 20 minutes
Inspection time: 18 minutes
Rework time: 12 minutes
Required:
1. Calculate MCE. Comment on its significance.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times.
3. What if waste is reduced by 40 percent? What is the new MCE? New cycle time?
Explanation
Verified
Verified
Manufacturing cycle efficiency:
MCE (ma...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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