A Company Needs to Rebalance a Product Layout for Producing

question 85

Multiple Choice

A company needs to rebalance a product layout for producing new plastic license plates. They plan to use the assembly line 6 hours in order to meet projected demand of 2,160 license plates each day. The following table describes the tasks involved in the production of this product:

For output to equal projected demand, what should be the actual cycle time for this assembly line?

• A)0 seconds
• B)3 seconds
• C)9 seconds
• D)10 seconds
• E)28 seconds

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Definitions:

Special Materials

Materials that are uncommon, difficult to procure, or used in specialized applications.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume and the activities they require.

Overhead Costs

Indirect costs of products or services.