The Otero Manufacturing Company Collected the Following Information (In Days)

question 75

Multiple Choice

The Otero Manufacturing Company collected the following information (in days) :
$$\begin{array} { | l | r | } \hline & \text { April } \\\hline \text { Transporting product } & 2.0 \\\hline \text { Processing product } & 14.0 \\\hline \text { Inspecting product } & 0.5 \\\hline \text { Storing product } & 6.0 \\\hline\end{array}$$
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What is the manufacturing cycle time?

• A) 14.0 days.
• B) 16.0 days.
• C) 22.0 days.
• D) 22.5 days.

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Definitions:

Machine Hours

A measure of production time, representing the hours a machine is operated in the manufacturing of a product.

Costing System

A method or procedure adopted by a business to estimate the cost of its products for inventory valuation, cost control, and decision making.

Overapplied Overhead

Occurs when the overhead allocated to products or services is more than the actual overhead costs incurred.

Profit Margin

The percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a product or service.