An Assembly Line Has to Perform 10 Work Elements, Whose

question 126

Multiple Choice

An assembly line has to perform 10 work elements, whose time requirements follow. An operations analyst has found a solution using some heuristics, as shown in the table. If the cycle time of the line is 90 seconds, what is the efficiency of the assembly line?

• A) less than 85%
• B) greater than 85% but less than 90%
• C) greater than 90% but less than 95%
• D) greater than 95%

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Definitions:

Unit Product Cost

The total cost associated with manufacturing a single unit of a product, including direct materials, direct labor, and overhead.

Period Cost

Expenses that are not directly tied to the production process and are instead expensed in the period in which they occur.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.