Theis Incorporated has the following departmental structure for producing its products:

A consultant designed a cellular manufacturing structure for the same product:

The times given represent the time required to process one unit of product.
-Refer to the figure.
a.What are the cycle times for each model?
b.What is the bottleneck department and why?
c.Under traditional costing,which model would be allocated more overhead expenses? Does this change under the features and characteristics approach?
d.What are the production rates of Model 1 and Model 2?
e.Assuming materials costs of $60 per unit for both Model 1 and Model 2 and conversion costs of $200 per hour,what is the unit cost of each model?

Question

Theis Incorporated has the following departmental structure for producing its products:
 
A consultant designed a cellular manufacturing structure for the same product:

The times given represent the time required to process one unit of product. 
-Refer to the figure.
a.What are the cycle times for each model?
b.What is the bottleneck department and why?
c.Under traditional costing,which model would be allocated more overhead expenses? Does this change under the features and characteristics approach?
d.What are the production rates of Model 1 and Model 2?
e.Assuming materials costs of $60 per unit for both Model 1 and Model 2 and conversion costs of $200 per hour,what is the unit cost of each model?

Quizplus · Accepted Answer

The Answer of Theis Incorporated has the following departmental structure for producing its products:
 
A consultant designed a cellular manufacturing structure for the same product:

The times given represent the time required to process one unit of product. 
-Refer to the figure.
a.What are the cycle times for each model?
b.What is the bottleneck department and why?
c.Under traditional costing,which model would be allocated more overhead expenses? Does this change under the features and characteristics approach?
d.What are the production rates of Model 1 and Model 2?
e.Assuming materials costs of $60 per unit for both Model 1 and Model 2 and conversion costs of $200 per hour,what is the unit cost of each model?

Theis Incorporated Has the Following Departmental Structure for Producing Its