Theis Incorporated Has the Following Departmental Structure for Producing Its $\quad$

question 138

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.What are the production rates of Model 1 and Model 2?
d.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?
e.If the company uses a Product Cost Conversion Cost Chart as follows:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Materials }$
$\begin{array}{l}\begin{array} { | l | l | c | c | } \hline & & \text { Steel } & \text { Titanium } \\\hline & 2.5 \mathrm {~kg} & .75 & .90 \\\hline \text { Size } & 5.0 \mathrm {~kg} & 1.00 & 1.20 \\\hline & 7.5 \mathrm {~kg} & 1.15 & 1.50 \\\hline & & & \\\hline\end{array}\end{array}$
and the average conversion cost = $50,what is the product cost of Model 1,a 5.0 kg unit made of Titanium and Model 2,a 7.5 kg unit made of steel? (Assume materials cost remains at $60 per unit.)

---

Definitions:

Primary Prevention

Strategies and actions taken to prevent the onset of illness or injury before the disease process begins, aiming to reduce the incidence of health problems.

Psychoeducational Group

A therapeutic group setting where individuals are educated about their mental health conditions and learn coping strategies.

Patients' Rights

The fundamental principles that recognize and protect the dignity, autonomy, and rights of patients within the healthcare system.

Suicidal Ideation

The experience of having thoughts about, considering, or planning suicide.