Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week. Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: 7,654 minutes 8,900 minutes 10.08 units per minute 12.00 units per minute 13,410 units 14,900 units 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness

Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week. Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: 7,654 minutes 8,900 minutes 10.08 units per minute 12.00 units per minute 13,410 units 14,900 units 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter20: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3CMA: Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and...

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Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down; only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Product A Product B Product C Sales price $ 10.25 $ 9.00 $ 2.50 Variable cost per unit $5.00 $ 4.00 $ 2.00 Machine hours per unit 1.75 1.00 0.25 Required: What is the contribution margin per unit for each product? What is the contribution margin per machine hour for each product? Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?
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