# A manufacturing cell has the theoretical capability to produce 180,000 heaters per quarter. The…

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A manufacturing cell has the theoretical capability to produce 180,000 heaters per quarter. The… 1 answer below » A manufacturing cell has the theoretical capability to produce 180,000 heaters per quarter. The conversion cost per quarter is $1,800,000. There are 60,000 production hours available within the cell per quarter. Required 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (min- utes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per heater. 3. Suppose that the actual time required to produce a heater is 30 minutes. Com- pute the amount of conversion cost View complete question » A manufacturing cell has the theoretical capability to produce 180,000 heaters per quarter. The conversion cost per quarter is $1,800,000. There are 60,000 production hours available within the cell per quarter. Required 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (min- utes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per heater. 3. Suppose that the actual time required to produce a heater is 30 minutes. Com- pute the amount of conversion cost actually assigned to each heater. Discuss how this approach to assigning conversion cost can improve delivery time. 4. Calculate MCE. How much non-value-added time is being used? How much is it costing per heater? 5. Cycle time, velocity, MCE, conversion cost per unit (theoretical conversion rate X actual conversion time), and non-value-added costs are all measures of per- formance for the cell process. Discuss the incentives provided by these measures. View less » Jan 06 2016 01:06 PM