A Firm Is Planning to Set Up an Assembly Line

question 17

Essay

A firm is planning to set up an assembly line to assemble 40 units per hour, and 57 minutes per hour are productive. The time to perform each task and the tasks that precede each task are contained in the following table.
(a) Draw a network diagram of precedence relationships.
(b) Compute the required cycle time per unit in minutes.
(c) Compute the theoretical minimum number of workstations required to produce 40 units per hour.
(d) Balance this line using the longest processing time heuristic.
(e) What is the efficiency of the line obtained in part d?

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Definitions:

FIFO Process Costing

A method of costing that assumes the first goods produced or acquired are the first ones sold or used in production.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

Opening Inventory

The value or quantity of goods available for sale or use at the beginning of an accounting period.

Weighted Average Process Costing

A method of cost accounting used in production where costs for materials, labor, and overhead are averaged over the units produced, taking into consideration the degree of completion.