Compute the companys manufacturing cycle time

Reference no: EM13214941

1. What are controllable costs?

2. What are two main goals in managerial accounting for reporting on and analyzing departments?

3. The recent month's income statement for the department follows.
(1) Analyze the items on the income statement and identify those that definitely should be included on a performance repot used to evaluate performance. List them and explain why they were chosen.
(2) List and explain the items that should definitely be excluded.
(3) List the items that are not definitely included o excluded and explain why they fall into that category.
Revenues
Sales of parts 72,000
Sales of services 105,000 177,000
Costs and expenses
Cost of parts sold 30,000
Building depreciation 9,300
Income tax allocated to department 8,700
Interest on long-term debt 7,500
Manager's salary 12,000
Payroll taxes 8,100
Supplies 15,900
Utilities 4,400
Wages 16,000
Total cost and expenses 111,900
Departmental net income 65,100

4. Classify each of the performance measures below into the most likely balanced scorecard perspective it relates to. Label answers using C (customer), P (internal process), I (innovation), F (financial).
(1) Cash flow from operations
(2) Number of reports of mishandled or lost baggage
(3) Percentage of on-time departures
(4) On time flight percentage
(5) Percentage of ground crew trained
(6) Return on investment
(7) Market value
(8) Accidents or safety incidents per mile flown
(9) Customer complaints
(10) Flight attendant training sessions attended
(11) Time airplane is on ground between flights
(12) Airplane mile per gallon of fuel
(13) Revenue per seat
(14) Cost of leasing airplanes.

5. Oakwood company produces maple bookcases to customer order. It received an order from a customer to produce 5,000 bookcases. The follwoin ginformation is available tfor the production of the bookcases.
Process time 6.0 days
Inspection time 0.8 days
Move time 3.2 days
Wati time 5.0 days
(1) Compute the company's manufacturing cycle time.
(2) Compute the company's manufacturing cycle efficiency. Interpret answer.
(3) Assume that Oakwood wishes to increase its manufacturing cycle efficiency to 0.75, what are some ways that it can be accomplished?

Reference no: EM13214941

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