Gleen Company Has a JIT System in Place

question 117

Essay

Gleen Company has a JIT system in place.Each manufacturing cell is dedicated to the production of a single product or major subassembly.One cell,dedicated to the production of guitar pickups,has four operations: machining,finishing,assembly,and qualifying (testing).
For the coming year,the pickup cell has the following budgeted costs and cell time (both at theoretical capacity):
During the year,the following actual results were obtained:
A. Compute the theoretical velocity for the cell per hour.
B. Compute the theoretical cycle time in minutes.
C. Compute the actual velocity for the cell per hour.
D. Compute the actual cycle time in minutes.

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Definitions:

Fixed And Variable Costs

Fixed costs remain unchanged regardless of the level of production or sales activity, while variable costs fluctuate with changes in activity.

Committed Fixed Costs

Long-term fixed costs that a business incurs from its commitments, such as leases or contracts, which are difficult to change in the short term.

Depreciation

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear over time.

Highly Trained Engineers

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