Amadou Company provided the following information on one of its factories: a. Maximum units produced in a

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Amadou Company provided the following information on one of its factories:

a. Maximum units produced in a quarter: 360,000 units

b. Actual units produced in a quarter: 225,000 units

c. Hours of production labour in a quarter: 60,000 hours

d. Theoretical cycle time: 10 minutes per unit

e. Actual cycle time: 16 minutes per unit

Required:

1. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit.

2. Calculate the MCE.

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Cornerstones of Managerial Accounting

ISBN: 978-0176530884

2nd Canadian edition

Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman

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