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Question: White Maple Company produces maple bookcases to customer order. It received an order from a customer to produce 15,000 bookcases. The following information is available for the production of the bookcases.
Process time . . . . . . . . . . 16.0 days
Inspection time . . . . . . . . 0.5 days
Move time . . . . . . . . . . . . 5.5 days
Wait time . . . . . . . . . . . . 18.0 days
Required: 1. Compute the company's manufacturing cycle time.
2. Compute the company's manufacturing cycle efficiency. Interpret your answer.Analysis Component
3. Assume that White Maple wishes to increase its manufacturing cycle efficiency to 0.75. What are some ways that it can accomplish this?
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Source documents provide the input for the accounting process
For this information, make appropriate assumptions about cost behavior and assume that direct labor costs vary directly with thenumber of units produced. How many units must the company sell inorder to earn a pretax profit of $500,000?
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