Theis Incorporated Has the Following Departmental Structure for Producing Its

question 11

Essay

Theis Incorporated has the following departmental structure for producing its products:

A consultant designed a cellular manufacturing structure for the same product:

The times given represent the time required to process one unit of product.
-Refer to the figure.
a.What are the cycle times for each model?
b.What is the bottleneck department and why?
c.Under traditional costing,which model would be allocated more overhead expenses? Does this change under the features and characteristics approach?
d.What are the production rates of Model 1 and Model 2?
e.Assuming materials costs of $60 per unit for both Model 1 and Model 2 and conversion costs of $200 per hour,what is the unit cost of each model?

---

Definitions:

Associative

Relating to or involving the formation of associations or connections between ideas, feelings, or sensations.

Cooperative

Working together willingly towards a common goal or benefit.

Non-social

Pertains to behavior or activities conducted in solitude or without interaction with other individuals.

Solitary Play

A type of play where a child plays alone, often engrossed in their activity, and does not seek to interact with other children or adults nearby.