Cycle Time, Conversion Cost per Unit, MCE

Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is $9,000,000. There are 150,000 production hours available within the cell per quarter.

Required:

1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced).

Theoretical velocity fill in the blank 1 fuel pumps per hour Theoretical cycle time fill in the blank 2 minutes per unit 2. Compute the ideal amount of conversion cost that will be assigned per subassembly. $fill in the blank 3 per unit

3 (a). Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. $fill in the blank 4 per unit

3 (b). What happens to product cost if the time to produce a unit is decreased to 25 minutes? $fill in the blank 5 per unit

4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. If required, round your answer to two decimal places. fill in the blank 6 How much non-value-added time is being used? fill in the blank 7 minutes

How much is it costing per unit? $fill in the blank 8 per unit