Figure 15-1 the Following Information Relates to Lancashire Manufacturing: to Produce a Produce

question 58

Multiple Choice

Figure 15-1
The following information relates to Lancashire Manufacturing: To produce a unit of product:
Mixing department 3 minutes per unit
Molding department 5 minutes per unit
Casting department 7 minutes per unit
Finishing department 4 minutes per unit
There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
-Refer to Figure 15-1. How long does it take to produce a batch of 20 units under a traditional manufacturing approach?

• A) 380 minutes
• B) 415 minutes
• C) 35 minutes
• D) none of the above

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Definitions:

Cost Flow

The movement and allocation of costs through various stages of production or services, tracking how costs are assigned to products or services.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring performance.

Controlling Costs

The process of planning, monitoring, and managing expenses to operate within a budget.

Degree Of Controllability

The extent to which the cost or performance outcome of a process or operation can be influenced or managed by the responsible party.