Case Problem 2 PRODUCTION STRATEGY Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabili- ties have been available only on expensive weight machines used primarily by physical therapists. At a recent trade show, demonstrations of the...
A workstation consisting of 12 machines in parallel, each having a mean process time of 2 hours. The station works 16 hours a day in 2 shifts; each is 8 hours. There is one hour break in each shift. You need to produce a lot of 48 jobs per day. Calculate the capacity in jobs per day of this station. A workstation with 12 machines in parallel, each having a mean process time of 2 hours. The station works 16...
Cycle Time, Velocity, Product Costing Mulhall, Inc., has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell, dedicated to the production of mopeds, has four operations: machining, finishing, assembly, and qualifying (testing). The machining process is automated, using computers. In this process, the model’s frame and engine are constructed. In finishing, the frame is sandblasted, buffed, and painted. In assembly, the frame and engine are assembled. Finally,...
6. Ashmore Company has two production departments, Cutting and Finishing. The Cutting Department is constrained by the speed of the cutting machines. The Finishing Department is constrained by the speed of the workers. The Fin- ishing Department normally waits on work coming from the Cutting Depart- ment. Each department works an 8- hour day. If the Cutting Department were to begin work 2 hours earlier than the Finishing Department each day (thereby working a 10-hour day), the two departments would...
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Overhead Cost Driver...
Exercise 17-8 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow Process Activity Overhead Coss Driver Quantity Components Changeover $ 458,000 Number of batches Machining 910,000 Machine hou Setups 226,000 aber...
. Exercise 17-9 Using departmental overhead rates to 2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups 5464.000 Driver Number of batches Machine hours Number of setups Quantity 810 0,320 180 Finishing Welding...
way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Machining...
Use Excel/Solver add in for accurate answers.
Problem 3-19 (Algorithmic) Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows: Category Product 1 Product 2 Product 3 Profit/unit $39 $51 $18 Machine 1 time/unit 1.5 Machine 2 time/unit Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of...
Exercise 4-9 Using ABC to assess prices LO P3 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Quantity 890 PROCESS Activity Components Changeover Machining Setups Driver Number of batches Machine hours Number of setups 7.800 100 Finishing Welding Inspecting...