Question

In: Accounting

Christmas Express makes wreaths in batch sizes of 15. The cutting & assembly process takes 2...

Christmas Express makes wreaths in batch sizes of 15. The cutting & assembly process takes 2 minutes per wreath and the decorating process time is 15 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process.

Compute the value-added, non-value-added, and the total lead time of the wreath process.

Value-added lead time:

Non-value-added lead time:

Move time

Within batch wait time

Total lead time

Compute the value-added ratio. Round to one decimal place.
%

Solutions

Expert Solution

Value-added lead time                    [2 + 15] 17
Non-value-added lead time
       Move time                                 5
       Within batch wait time            [17 x (15 wreaths - 1 wreath)] 238
Total lead time 260

.

.

Calculation of value-added ratio
Value added lead time   (a) 17
Total lead time               (b) 260
value-added ratio         [(a ÷ b) x 100] 6.5%

Related Solutions

Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process....
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 16 and 64 trees, respectively, in them at 1 time. The company also estimates that the cutting process...
2.a. You are running a batch reactor. Each batch takes about four hours to run. You...
2.a. You are running a batch reactor. Each batch takes about four hours to run. You measure the purity of the batch four times in the last hour to ensure that it has stabilized. You want to monitor the results using an X-R chart. The data you have collected for the first 10 batches are given the table below. X1, X2, X3 and X4 are the four samples you pull from the batch in the last hour. Using all the...
Justin Buzzer makes a 15 percent down-payment on a house valued $100,000 and takes out a...
Justin Buzzer makes a 15 percent down-payment on a house valued $100,000 and takes out a 20-year fixed rate mortgage with quarterly payments. The mortgage rate is 9 percent compounded quarterly with the first payment occurring at t = 1. What is Justin’s quarterly mortgage payment?
Journalize transactions for two processes. (LO 2) Schrager Company has two production departments: Cutting and Assembly....
Journalize transactions for two processes. (LO 2) Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process—Cutting $2,900, Work in Process—Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred. 1.Purchased $62,500 of raw materials on account. 2.Incurred $60,000 of factory labor. (Credit Wages Payable.) 3.Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid. 4.Requisitioned materials for Cutting $15,700 and Assembly $8,900. 5.Used factory labor...
Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct...
Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct materials are added at the beginning of the process in the Forging Department, whereas all direct materials are added at the end of the process in the Assembly Department. Conversion costs are incurred uniformly over time in both departments. As units are completed in the Forging Department, they are transferred to the Assembly Department. The costs associated with the transferred units are included in...
1)In a sales contract which party makes warranties, buyer or seller? 2)In contrast to an express...
1)In a sales contract which party makes warranties, buyer or seller? 2)In contrast to an express warranty, implied warranties are made simply by selling an item 3)What is the implied warranty of merchantibility? 4)Can any seller make an implied warranty of merchantibility? 5)What's the difference bewteen the implied warranty of merchantability and the implied warranty of fitness for a particular purpose? 6)Can any seller make the wrranty of fitness for a particular purpose? 7)In order for the warranty of fitness...
Question 2 15 marks At the beginning of the year Grey Corporation estimated the following: Assembly...
Question 2 15 marks At the beginning of the year Grey Corporation estimated the following: Assembly Department Packaging Department Overhead R 840,000 R 210,000 Direct labor hours 80,000 hrs. 4,000 hrs. Machine hours 20,000 hrs. 12,000 hrs. Grey uses departmental overhead rates. In the assembly department, overhead is applied to direct labor hours. In the packaging department, overhead is applied on the basis of machine-hours. Actual data for the month of April are as follows: Assembly Department Packaging Department Overhead...
2. The following data gives the number of defectives in 10 independent samples of varying sizes from a production process:
2. The following data gives the number of defectives in 10 independent samples of varying sizes from a production process: Draw the control chart for fraction defectives and comment on it. 3.Draw a suitable control chart for the following data pertaining to the number of coloured threads(considered as defects) in 15 pieces of cloth in a certain make of synthetic fibres and state your conclusions: 7,12,3,20,21,5,4,3,10,8,0,9,6,7,20
Air within a piston–cylinder assembly, initially at 15 lbf/ in.2, 510°R, and a volume of 6...
Air within a piston–cylinder assembly, initially at 15 lbf/ in.2, 510°R, and a volume of 6 ft3, is compressed isentropically to a final volume of 1.75 ft3. Assuming the ideal gas model with k = 1.4 for the air, determine the: (a) mass, in lb. (b) final pressure, in lbf/in.2 (c) final temperature, in °R. (d) work, in Btu.
Funky frames makes frames. Every frame goes through 2 depts: assembly and finishing. The Beg. WIP...
Funky frames makes frames. Every frame goes through 2 depts: assembly and finishing. The Beg. WIP is 100% done for DM and 40% done for CC. The Ending WIP is 100% done for DM and 30% done for CC. Funky frames uses the weighted average method. Physical Units DM CC Beg. WIP 95 $1665 $988 Ending WIP 130 Completed 455 Costs added this year $17,640 $11,856 Compute WIP ending for the assembly dept. Compute cost of completed units for the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT