User Account

All Pages

What is the average waiting time

Assignment Help Managerial Accounting
Reference no: EM132481404

Easy Riders Ltd. makes small motorcycles. The monthly demand for these motorcycle ranges from 80 to 100 motorcycles. The average demands is 92 motorcycles. The plant operates 300 hours a month. Each cycle takes approximately 1.5 hours to complete.

if the company adds a new line of scooters, initial demand will be 20 per month. Each scooter will take 1 hours to make. To offset approaching production capacity, expanding the assembly line is possible. This will decrease manufacturing time for all products by 20 percent. However, this will increase the costs of motorcycles from $400 to $500 and a scooters from $200 to $240. The change will also cause increase in price from $700 to $750 for motorcycle and from $450 to $500 for scooters.

Calculate

Question a) what is the average waiting time for motorcycles if they are the only item manufactured.

Question b) what is the average waiting time if both motorcycle and scooters are produced and the assembly line is not enlarged.

Question c) What is the average waiting time if both motorcycle and scooters are produced and the assembly line is enlarged.

Question d) what is the expected monthly margin without scooters if the company sells all 92 motorcycle its manufactures.

Question e) What are the expected monthly contribution margins if scooters are made with the current assembly line and with new assembly line? Assume average sales and that sales equal production.

Question f) What action do you recommend.

Reference no: EM132481404

Questions Cloud

What the lake would record goodwill of : What the Lake would record goodwill of? Lake Incorporated purchased all of the outstanding stock of Huron Company paying $963,000 cash.
Calculate current multifactor productivity per month? : Calculate Current multifactor productivity per month?. After increasing the number of work hours to 800 per month?, the multifactor productivity
What is the balance due on april : He pays $800 on August 17 and $400 on November 20 of 2010 and $500 on February 2, 2011. What is the balance due on April 18, 2011?
Calculate total manufacturing costs : If there is no beginning work in process inventory and ending work in process inventory is $50,000, what is the cost of goods manufactured?
What is the average waiting time : What are the expected monthly contribution margins if scooters are made with the current assembly line and with new assembly line?
Determine what is the amount of the fringe benefits cost : Determine what is the amount of the fringe benefits cost to be allocated to Division A and to Division B. Beasley Services Company (BSC) has 50 employees
Determine and allocate budgeted overhead costs to product : Determine and Allocate budgeted overhead costs to product, Willey Company makes three products in its factory: plastic cups. plastic tablecloths.
PSY4910 Researcher Capstone Project Assignment : PSY4910: Researcher Capstone Project Assignment help and solution Why does this research need to be conducted and What might change as the result of research
Determine the amount of the fringe benefits cost : Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B.Beasley Services Company (BSC) has 50 employees

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd