Daily Capacity of a Product Layout Is Determined by

question 30

Multiple Choice

Daily capacity of a product layout is determined by

• A)cycle time divided by operating time.
• B)operating time divided by cycle time.
• C)operating time divided by total task time.
• D)total task time divided by cycle time.
• E)cycle time divided by total task time.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance.

Materials Markup

The extra percentage added to the cost price of goods to cover overhead and profit when selling goods.

Labor Rate

The cost paid to labor per unit of time, often referred to as wage rate or hourly rate.