Arnaud Company divided its tool production factory into manufacturing cells. Each cell produces one product. The cordless

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Arnaud Company divided its tool production factory into manufacturing cells. Each cell produces one product. The cordless drill cell had the following data for last quarter:

a. Maximum units produced in a quarter: 270,000 units

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

c. Hours of cell production labour in a quarter: 90,000 hours

Required:

1. Compute the theoretical cycle time (in minutes).

2. Compute the actual cycle time (in minutes).

3. Compute the theoretical velocity (in units per hour).

4. Compute the actual velocity (in units per hour).

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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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