Cycle Time and Velocity, MCE Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 182,250 laptops per quarter but currently produces 72,900 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 11 minutes move time, 19 minutes of wait time, and 4 minutes of rework time. (All work done by cell workers.) Required: 1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). If required, round to one decimal place. Theoretical Actual Velocity laptops per hour minutes per laptop laptops per hour minutes per laptop Cycle time 2. Compute the ideal and actual amounts of conversion cost assigned per laptop. If required, round your answers to the nearest cent. Assignment per unit (theoretically) Assignment per unit (actual) 3. Calculate MCE. If required, round your answer to two decimal places.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
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Cycle Time and Velocity, MCE
Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 182,250 laptops per quarter but currently produces 72,900 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours
available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 11 minutes of move time, 19 minutes of wait time, and 4 minutes of rework time. (All work is done by cell workers.)
Required:
1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). If required, round to one decimal place.
Theoretical
Actual
Velocity
laptops per hour
minutes per laptop
laptops per hour
minutes per laptop
Cycle time
2. Compute the ideal and actual amounts of conversion cost assigned per laptop. If required, round your answers to the nearest cent.
Assignment per unit (theoretically)
Assignment per unit (actual)
3. Calculate MCE. If required, round your answer to two decimal places.
Transcribed Image Text:Cycle Time and Velocity, MCE Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 182,250 laptops per quarter but currently produces 72,900 units. The conversion cost per quarter is $7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 11 minutes of move time, 19 minutes of wait time, and 4 minutes of rework time. (All work is done by cell workers.) Required: 1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). If required, round to one decimal place. Theoretical Actual Velocity laptops per hour minutes per laptop laptops per hour minutes per laptop Cycle time 2. Compute the ideal and actual amounts of conversion cost assigned per laptop. If required, round your answers to the nearest cent. Assignment per unit (theoretically) Assignment per unit (actual) 3. Calculate MCE. If required, round your answer to two decimal places.
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