MC Qu. 120 Levelor Company's flexible budget shows... Levelor Company's flexible budget shows $10,640 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.20 per direct labor hour based on a budgeted operating level of 6,050 direct labor hours (90% of capacity). If overhead actually incurred was $11,106 during May, the controllable variance for the month was:

Answers

Answer 1

Answer: $466 Unfavorable

Explanation:

The Controllable variance is found by the formula:

= Flexible budget overhead - Actual Overhead incurred

= 10,640 - 11,106

= -$466

As this is a negative, it is an Unfavorable variance because it shows that actual overhead was higher than planned.


Related Questions

Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
A.1,120.
B. 8,214.
C.11,200.
D.12,320.
E.14,080.

Answers

Answer:

D.12,320.

Explanation:

The computation of the number of units to be sold for attaining the target income level is given below:

Target profit

= 10% of fixed cost

= 10% of 112,000

= 11200

Now  

Sales needed = (Fixed costs +target profit) ÷ unit contribution margin

= (112,000+11,200) ÷ (35-25)

= 123,200 ÷ 10

= 12,320 units

Roger is hired by an international HR consulting firm as its Outplacement Counselor. Prior to receiving extensive training on the company's copyrighted techniques and programs, Roger is asked to agree in his employment contract that he will not work as a trainer for a rival outplacement company in a specified list of states for a period of one year from the time he quits or his employment will be terminated. This best exemplifies a _____. Group of answer choices

Answers

Answer: noncompeted clause

Explanation:

A non-compete agreement simply refers to the legal agreement which specifies that an employee of a particular company must not enter into competition with the employer when the employee doesn't.woek with the company anymore or when the employment period is over.

According to the non-compete agreement, the employee is also prohibited from revealing secrets or proprietary information or secrets to other parties.

define accounting ?

Answers

Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.

Answer:

the action or process of keeping financial accounts.

Explanation:

503,000 on November 1, 2021, and signed a 12-month note bearing interest at 8%. Interest is payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of

Answers

Answer:

$6,707

Explanation:

Calculation to determine what Universal Travel Inc. should report interest payable at December 31, 2021,

Interest payable at Dec 31,2021= 503,000 * 8% * 2 months/12 months

Interest payable at Dec 31,2021= $6706.6

Interest payable at Dec 31,2021= $6707 Approximately)

(November 1 - December 31 = 2 months)

Therefore Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of $6,707

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relating to joint families . nuclear families
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Answers

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Answer:

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Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following information:

a. The October 31 balance in the cash account is $53,817.
b. All sales are on account. Sales in September were $950,000 and in October were $1,240,000.
c. November sales are expected to be $2,145,000.
d. In Khloe's experience, 70 percent of sales are collected in the month of sale and 28 percent are collected in the month following sale. The remaining credit sales are uncollectible.
e. Khloe purchases all merchandise on account. Purchases in September were $750,000 and in October were $980,000. November purchases are expected to be $2,000,000 as Khloe prepares for the Christmas buying season. Fifteen percent of purchases are paid in the month of purchase, while the remainder is paid in the month following the purchase month.
f. Khloe Company has nine employees who are paid a total of $48,000 per month. Due to timing issues, about 90 percent of total wages are paid in the month earned and the remaining 10 percent are paid in the following month.
g. Rent for Office and warehouse space is $12,300 paid monthly in cash.
h. Utilities average $6,100 per month and are paid in cash.
e. In November, Khloe expects to pay employment taxes of $6,625.
f. Since Khloe imports product from overseas, customs duty and shipping to the central location
g. Of 30 percent Of current monthly purchase cost must be paid in the month of purchase.
h. Other cash expenses for November are expected to be $41,500.

Required:
a. Prepare a cash budget for Khloe Company for the month of November.
b. What if Khloe faced a customs duty and shipping percentage of 35 percent How would that affect the November cash budget?

Answers

Answer:

Khloe Company

a. Khloe Company

Cash Budget for the month of November:

Beginning cash balance          $53,817

Cash collections                   2,269,120

Cash available                   $2,322,937

Cash payments:

Purchases                           $1,133,000

Wages                                       48,000

Rent expense                            12,300

Utilities expense                         6,100

Employment taxes                     6,625

Customs duty and shipping 600,000

Other expenses                       41,500

Total cash payments        $1,847,525

Ending cash balance           $475,412

b) The ending cash balance will be reduced by $100,000 from $475,412 to $375,412, with the total payments increased to $1,947,525.

Explanation:

a) Data and Calculations:

October 31 cash balance = $53,817

                                  September       October     November

Sales on account       $950,000   $1,240,000   $2,145,000

Cash collections:

70% month of sale                                               $1,501,500

28% month following                                              767,620

2% uncollectible

Total cash collections for sales                         $2,269,120

                                  September       October     November

Credit Purchases       $750,000     $980,000   $2,000,000

Cash payments:

15% month of purchase                                         $300,000

85% month following                                               833,000

Total cash payment for purchases                     $1,133,000

                                  September       October     November

Wages Expense          $48,000        $48,000       $48,000

Cash payment for wages:

90% month earned                                                $43,200

10% month following                                                  4,800

Total cash payment for wages                             $48,000

Other monthly cash payments:

Rent expense  $12,300

Utilities expense $61,00

Employment taxes $6,625

Customs duty and shipping = $600,000 ($2,000,000 * 30%)

Other expenses $41,500

If customs duty and shipping were 35%

Customs duty and shipping = $700,000 ($2,000,000 * 35%)

Samir is a self-employed marketing consultant. He had no income from January through March 2020. His April through December 2020 income subject to SE tax is $55,000.
Samir's SE tax for 2020 is $7,771 [$55,000 x 0.9235 x 0.153 = $7,771]. Samir may reduce his estimated tax payments by how much? Hint: USE Form Schedule SE to help you find the answer.

Answers

Answer:

$3,886

Explanation:

Since SELF EMPLOYMENT TAX is 15.3% of your wages which is why the Internal Revenue Service (IRS) make it possible for you to deduct your employer equal portion of your self employment taxes that the employer pays during the year which is 7.65% Calculated as (15.3%/2) which therefore means that Samir may reduce his ESTIMATED TAX PAYMENTS by $3,886 [$55,000 x 0.9235 x 0.0765 = $3,886] while the remaining 7.65%( 15.3% -7.65%) are not deductible because they correspond to employee taxes.

Therefore he may reduce his ESTIMATED TAX PAYMENTS by $3,886.

What is the process of managing costs

Answers

Should be steps

Summarize the flow of physical units of output.
Compute output in terms of equivalent units.
Summarize total costs to account for and Compute equivalent unit costs.
Assign total costs to units completed and to units in ending work in process inventory.
split the function into four steps: resource planning, estimation, budgeting and control. They are mostly sequential, but it's possible that some resource changes happen midway through the project, forcing the budgets to be adjusted.

I hope this helps :)

Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's fiscal year-end.
Accounts Debits Credits
Cash $ 10,300
Accounts Receivable 9,500
Supplies 2,000
Prepaid Rent 7,200
Equipment 90,000
Accumulated Depreciation $ 12,000
Accounts Payable 7,700
Salaries Payable 0
Interest Payable 0
Utilities Payable 0
Notes Payable 20,000
Common Stock 45,000
Retained Earnings 19,000
Service Revenue 42,200
Salaries Expense 24,500
Interest Expense 0
Rent Expense 0
Supplies Expense 0
Utilities Expense 2,400
Depreciation Expense 0
Totals $ 145,900 $ 145,900
Information necessary to prepare the year-end adjusting entries appears below.
a. Depreciation of equipment for the year is $6,000.
b. Accrued salaries at year-end should be $2,100.
c. Crimson Tide borrows $20,000 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.
d. Unused supplies at year-end total $700. Crimson Tide debits Supplies at the time supplies are purchased.
e. Crimson Tide opens a second studio by paying for one year of rent in advance on April 1, 2018, for $7,200 ($600 per month) debiting Prepaid Rent.
f. Unpaid utilities for December total $200.
Required:
1) Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.
2) prepare an adjusted trial balance.
3a ) prepare an income statement for the year end december 31,2018.
3b) prepare a statement of sharholders equity for the year ended decmber 31,2018.
3c) prepare a classified balance sheet for the year ended december 31, 2018.
4) record the closing entries.
5) prepare a post-closing trial balance.

Answers

Answer:

asdasd sadad asd asdas 2 212 313135 54 554 dsa asd sad  asa sd  

Explanation:

Milltown Company specializes in selling used cars. During the month, the dealership sold 32 cars at an average price of $16,000 each. The budget for the month was to sell 30 cars at an average price of $17,000. Compute the dealership's sales price variance for the month.

Answers

Answer:

-$32,000

Explanation:

The sales price variance is a measure used determine the difference between an entity's expected price of a product or service and its actual sales price. It may be favorable or unfavourable to the company and may be calculated as

Sales price variance =  Actual quantity sold * (actual selling price - budgeted selling price)

Hence given that  the dealership sold 32 cars at an average price of $16,000 each while the budget was to sell 30 cars at an average price of $17,000,

Sales price variance = 32 ($16,000 - $17,000)

= -$32,000

The minus indicates unfavourable sales price variance

Sandhill, Inc. has a unit selling price of $920, variable cost per unit of $510, and total fixed costs of $280,850. Compute the break-even sales units and sales dollars.

Answers

Answer:

(A) 685 UNITS

(B) 630,200 DOLLARS

Explanation:

Variable cost + Fixed cost  =  Total Cost

The break-even sales units would be the number of units Sandhill Inc. will sell in order to break even; that is, in order for their total cost to equal their total revenue.

If break-even point is the point where TR = TC then it is the same point at which PROFIT = 0

Recall that profit is the positive difference between total revenue and total cost. The negative difference (that is when TR < TC) is called loss.

Let X be = the break-even quantity or number of units, then we have

920x = 510x + 280850

Remember that VC varies or increases with the number of units produced, and so it has the x attached to it in this equation. FC on the other hand remains the same, regardless of the number of units produced.

So the left hand side of the equation has the total revenue, while the right hand side of the equation has the total cost.

Solving algebraically.

920x - 510x  =  280850

410x  =  280850

x =  280850 ÷ 410  =  685

ANSWER 1

The break-even sales units is 685 units.

The second computation is Sales in Dollars; at break-even sales units.

This revenue or sales is derived thus: Price per unit x Number of units

$920 x 685units  = $630,200

ANSWER 2

The break-even total sales or total revenue is $630,200

KUDOS!

Country A and Country B have had an informal trading arrangement for many years wherein merchants on the border of the countries may freely trade goods without the restriction of fees. Which of the following is true?

a. The government of Country A may not arbitrarily begin to charge fees for items brought in from Country B.
b. Country A and Country B have a binding agreement to this arrangement under customary international law.
c. Country A and Country B have no binding agreement under customary international law.
d. More than one response is correct.

Answers

Answer:

d. More than one response is correct.

Explanation:

Even though international law does not follow common law, and informal agreements are not enforceable between countries, they tend to facilitate the relationship between them. For example, Canada and the US do not have a strict border patrol and no one is asking for a wall to be built on the Canadian border. It is accepted that US and Canadian citizens cross almost freely as tourists. If someone tried to enforce a strong border policy, the other government would oppose it and it would turn into a diplomatic mess and would probably not be enforceable at all.

If a business adopts a low-cost strategy, it should build a supply chain with ________. Question 43 options: 1) product development skills 2) modular design in products 3) fast transportation 4) buffer stock 5) minimized inventory

Answers

Answer:

5) minimized inventory

Explanation:

If a company adopts a low-cost strategy, it must build a supply chain with minimized inventory, which configures that the company is adopting a just-in-time management strategy, which is an administration system whose philosophy is a production system according to demand, avoiding wasted stock and, consequently, unnecessary costs.

If a business adopts a low-cost strategy, it should build a supply chain with 5)minimized inventory.

What is a low-cost strategy?

A pricing strategy in which an employer offers a surprisingly low rate to stimulate the call for and benefit marketplace proportion.

How would you select the right supply chain strategy?

Awareness on whether or not your organization offerings a client base that wishes immediate transport of product, or one wherein customers keep in mind that a lead time regularly accompanies their buy order. understand the effect of competition and whether or not maintaining safety stock is important to remain income.

Learn more about low-cost strategy here: https://brainly.com/question/27961763

#SPJ2

Henry, a new human resources coordinator, has been asked to calculate the past month's turnover rate. He has divided the number of people who have left the company during that month (11) by the number of employees hired
(10), and then multiplied that by 100. But the number he
has come up with, 110 percent, is way too high and
doesn't make any sense. What should have Henry done
to avoid his error?


He should have multiplied the cost to
terminate by the cost per hire.

He should have multiplied by 10, not 100.

He should have divided the number of
employees hired by the cost to hire them.

He should have divided the number of people
who have left the company by the average
number of employees that month.

Answers

Answer:

he should have multiplied by 10, not 100

Explanation:

If you had to recommend one product, which product would you recommend they create? Underline or highlight your answer:
● Organic Bloom Shampoo.
● Moisturizing Black Soap Shampoo with Dandruff Control.
● Coconut Protein Shampoo and Conditioner.

Answers

Answer:

the second option

Explanation:

my dandruff is pretty bad

Moisturizing Black soap Shampoo with Black dandruffs Ultimate control is what I would seriously recommend. A lot of people are getting dandruffs and lices more nowadays, so the product would be very fitting for the demand.

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a total of $25,740 in overhead. It currently uses a traditional cost system with overhead applied to the product on the basis of either labor hours or machine hours. Schell has compiled the following information about possible cost drivers and its two product lines:

Schell Company Total Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by Deluxe Floor Mat Line
1,170 labor hours 740 labor hours 430 labor hours
7,000 machine hours 2,900 machine hours 4,100 machine hours

Required:
a. Suppose Schell uses a traditional costing system with direct labor hours as the cost driver. Determine the amount of overhead assigned to each product line.
b. Suppose Schell uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.

Answers

Answer:

Schell Company

Overhead assigned:             Standard   Deluxe

a. Based on Labor hours      $16,280    $9,460

b. Based on Machine hours $10,663   $15,076

Explanation:

a) Data and Calculations:

Total overhead = $25,740

                           Total   Standard    Deluxe  Overhead Rate

Labor hours        1,170          740          430           $22 ($25,740/1,170)

Machine hours 7,000      2,900        4,100            $3.677 ($25,740/7,000)

Overhead assigned:             Standard   Deluxe

a. Based on Labor hours      $16,280    $9,460

                                         ($22 * 740)   ($22 * 430)

b. Based on Machine hours $10,663   $15,076

                                ($3.677 * 2,900)   ($3.677 * 4,100)

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:
Beginning inventory, January 1: $5000
Net sales: $79,000
Net purchases: $77,000
The company's gross margin ratio is 20%. Using the gross profit method, the estimated ending inventory value would be:_____.
A) $18,800.
B) $82,000.
C) $15,800.
D) $63,200.
E) $15,400.

Answers

D) 63,200 ……………….hope this helps

Each firm embraces objectives that management believes will make the firm more successful.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Organizational objectives and goals are defined by strategic planning, which is a document that contains the organizational mission and values, as well as the action plans that the company must implement over a period of time to achieve its objectives and goals and be a profitable company and competitive in the market.

Therefore, the administration of each company will define what are its market objectives that will make it more successful and positioned in the long term.

What are the process of microeconomics?

Answers

Answer:

Microeconomics is the study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production. Individual actors are often grouped into microeconomic subgroups, such as buyers, sellers, and business owners.

Explanation:

BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form.

Form Type Mix of Forms Form Cost
A 0.2 $0.40
B 0.2 $0.20
C 0.2 $0.20
D 0.2 $0.80
E 0.2 $0.40

a. The expected cost of digitizing a form is $_______ .
b. Suppose that after the agreement, the client sends an equal mix of forms of types D and E only. The expected digitization cost per form of the forms sent by the client is $________ . This leads to an expected loss of $_______ per form for BPO.

Answers

the answer is probably 01846572’

You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 1 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio

Answers

Answer:

2

Explanation:

Beta measures systemic risk

The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.  

If the portfolio is less risky than the market, its beta would be less than one  

If the portfolio is more risky than the market, its beta would be greater than one

The beta of a risk free asset is zero

The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio

1 = (1/3 x 1) + (1/3 x 0) + (1/3 x s)

1 =  1/3 + (1/3 x s)

1 - 1/3 = 1/3s

2/3 = 1/3s

s = 2/3 x 3 = 2

Duval Co. issues four-year bonds with a $100,000 par value
on January 1, 2019, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31.
1. Prepare a straight-line amortization table like Exhibit 14.7 for these bonds.
2. Prepare journal entries to record the first two interest payments.
3. Prepare the journal entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

Answers

Answer:

Duval Co.

Journal Entries to record the first two interest payments:

June 30, 2019:

Debit Interest expense $4,006

Credit Cash payment $3,500

Credit Amortization of discounts $506

To record the first interest payment.

December 31, 2019:

Debit Interest expense $4,006

Credit Cash payment $3,500

Credit Amortization of discounts $506

To record the second interest payment.

December 31, 2022:

Debit Bonds Payable $100,000

Credit Cash $100,000

To record the payment on maturity of the bonds.

Explanation:

a) Data and Calculations:

Face value of bonds = $100,000

Price of the bonds = $95,952

Discounts =                $4,048

Period of bonds = 4 years

Coupon rate = 7%

Semi-annual amortization of discounts = $506 ($4,048/8)

June 30:

Cash payment = $3,500 ($100,000 * 3.5%)

Amortization of discounts $506

Interest expense = $4,006

December 31:

Cash payment = $3,500 ($100,000 * 3.5%)

Amortization of discounts $506

Interest expense = $4,006

Altoon Manufacturing's records were partially destroyed in a flood. The company does not know what sales have been for the year, but it does know all sales were on account. Also, the beginning accounts receivable balance was $19,000, and its accounts receivable balance at the time of the flood was $25,000. From the beginning of the year until the flood, cash collections from credit customers were $158,000. Given this information, what are Altoon Manufacturing's sales for the year until the flood?
a. $164,000
b. $114,000
c. $202,000
d. $209,000
e. $189,000

Answers

Answer:

a. $164,000

Explanation:

The computation of the Altoon Manufacturing's sales for the year until the flood is given below:

= Cash collections + ending receivables - opening receivables

= $158,000 + $25,000 - $19,000

= $164,000

hence, the Altoon Manufacturing's sales for the year until the flood is $164,000

Therefore the first option is correct

Discuss various factors that must be considered on the warehouse location decisions? ​

Answers

Answer:

burglar proofing

Explanation:

security

An educational software company wants to compare the effectiveness of teaching about supply and demand curves between computer animation presentations and textbook presentation. The company tests the economic knowledge of a number of first-year college students, then randomly divides them into two groups. One group uses the animation and the other studies the text. The company retests all the students and compares the increase in economic understanding between the two groups. Is the study described above an experiment? Why or why not?

Answers

Answer:

Yes, this is often an experiment. the corporate assigned students to either the animation or the text, instead of watching post hoc ergo propter hoc data.

Explanation:  

The explanatory variables are the pre-test data and therefore the assignment to a given group. The responding variable is that the post-test data.

A company purchases and uses 40000 gallons of materials for which they paid $3 a gallon. The materials price variance was $90000 favorable. What is the standard price per gallon?

Answers

Answer:

the standard price per gallon is $5.25

Explanation:

the computation of the standard price per gallon is given below;

Materials Price Variance = Actual Quantity × (Standard Price - Actual Price)

$90,000 = 40,000 × (Standard Price - $3)

$2.25 = Standard Price - $3

Standard Price = $5.25

Hence, the standard price per gallon is $5.25

The same should be considered

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,454,100 323,000 February 1,621,300 361,000 March 1,145,800 234,000 April 1,554,400 350,000 May 1,303,700 281,000 June 1,671,400 380,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Transportation Costs Gross-Ton Miles

January $1,454,100 323,000

February 1,621,300 361,000

March 1,145,800 234,000

April 1,554,400 350,000

May 1,303,700 281,000

June 1,671,400 380,000

To calculate the variable and fixed cost under the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (1,671,400 - 1,145,800) / (380,000 - 234,000)

Variable cost per unit= $3.6

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 1,671,400 - (3.6*380,000)

Fixed costs= $303,400

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,145,800 - (3.6*234,000)

Fixed costs= $303,400

Dennis Rodman has a $5,000 debt balance on his Visa card that charges 10. 7 percent compounded monthly. Dennis's current minimum monthly payment is 5 perent of his debt balance, which is $250.
How many months (round up) will it take Dennis to pay off his credit card if he pays the current minimum payment of $250 at the end of each month?
How many months will it take Dennis to pay off his credit card?

Answers

Answer: 22.13 months

Explanation:

The number of months that it will take Dennis to pay off his credit card will be calculated thus:

Balance amount = $5000

Monthly payment = $250

Interest rate = 10.7%/12 = 0.89%

The number of months will be:

= NPER(0.89, -250, 5000, 0).

= 22.13 months

From the theoretical research on commodity economics and the market, please suggest the necessary solutions for investors to stand firm in the market? Why?

Answers

Answer:

23

Explanation:

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are:

Answers

Answer:

1. The correct option is C. 54.

2. The correct option is E. 60.

3. The correct option is A. 3.

4. The correct option is E. 90%.

5. The correct option is E. y.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product:

Task           Time (sec)            Immediate Predecessor

u                      30                                   none

v                      30                                    u

w                      6                                      u

x                       12                                    w

y                      54                                     x

z                      30                                    v, y

1. Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?

A. 162

B. 72

C. 54

D. 12

E. 60

2. If the company desires that output rate equal demand, what is the desired cycle time (in seconds)?

A. 162

B. 72

C. 54

D. 12

E. 60

3. If the company desires that output rate equal demand, what is the minimum number of workstations needed?

A. 3

B. 4

C. 5

D. 6

E. 7

4. If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations?

A. 100%

B. 92.5%

C. 75%

D. 87.5%

E. 90%

5. If the company desires that output rate equal demand, what is the last task performed at the second workstation in the balance which uses the minimum number of workstations?

A. u

B. v

C. w

D. x

E. y

The explanation of the answers is now provided as follows:

1. Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?

The minimum cycle time is equal to the maximum task time. From the data in the question, it can be seen that the maximum task time is 54. Therefore, the correct option is C. 54. That is, the minimum possible cycle time (in seconds) for this situation is 54.

2. If the company desires that output rate equal demand, what is the desired cycle time (in seconds)?

Desired cycle time (in seconds) = Demand rate / Number of hours per days = 480 / 8 = 60

Therefore, the correct option is E. 60.

3. If the company desires that output rate equal demand, what is the minimum number of workstations needed?

Total task time = 30 + 30 + 6 + 12 + 54 + 30 = 162

Minimum possible cycle time = 54

Therefore, we have:

Minimum number of workstations needed = Total task time / Minimum possible cycle time = 162 / 54 = 3

Therefore, the correct option is A. 3.

4. If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations?

Line efficiency = Total task time / (Minimum number of workstations needed * Desired cycle time) = 162 / (3 * 60) = 162 / 180 = 0.90, or 90%

Therefore, the correct option is E. 90%.

5. If the company desires that output rate equal demand, what is the last task performed at the second workstation in the balance which uses the minimum number of workstations?

The last task should be the one has the longest task time. From the data table in the question, it can be observed that y is the task that has the longest task time. This implies y is the task to perform last.

Therefore, the correct option is E. y.

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