Manufacturing
Al Torre makes o-rings for the military. Each strip of metal produces 120 rings and costs $2.98. Torre can produce 48 rings per hour. The direct labor cost is $17.50 per hour. What is the direct material cost?
$0.025 per ring
A _____ analysis determines how many units of a product must be made and sold to cover production expenses.
Break-even
If the size is incorrect or if an item is damaged or broken, it is said to be _____.
Defective
A _____ is conducted to determine how long a particular job should take.
time-study
A time study conducted by Smith Manufacturing showed that Nick Ramos spends a typical day on the following activities: supervising subordinates 1.5 hrs; working on the floor 3.5 hrs; doing paperwork 2 hours; taking breaks 0.5 hrs; socializing with employees 0.5 hrs. What percentage of time does Ramos spend working on the floor?
Find the total time.
8 hours
Al Torre makes o-rings for the military. Each strip of metal produces 120 rings and costs $2.98. Torre can produce 48 rings per hour. The direct labor cost is $17.50 per hour. What is the direct labor cost?
$0.365 per ring
Webb Manufacturing produces metal washers. The selling price per washer is $0.18. The variable cost per washer is $0.09. Fixed costs total $357,000. What is the break-even point in number of washers?
3,966,667
Ace Manufacturing produces o-rings for the military. The quality control inspector checked 75 rings and found 4 that were defective. The process is “out of control” if more than 4 percent of the sample is defective.
Find the percent defective.
5.33%
Al Torre makes o-rings for the military. He works 9 hours per day with a half hour off for lunch and 4 10-minute breaks. He spends 3 minutes producing each ring. How many rings should Torre be able to produce each day?
Find the actual time worked.
Find the number of units.
470 minutes
156.67 rings
A time study conducted by Smith Manufacturing showed that Nick Ramos spends a typical day on the following activities: supervising subordinates 1.5 hrs; working on the floor 3.5 hrs; doing paperwork 2 hours; taking breaks 0.5 hrs; socializing with employees 0.5 hrs. What percentage of time does Ramos spend working on the floor?
Find the percentage of time working on the floor.
43.75% of time spent on activity
The sum of the direct material costs and the direct labor costs is the .
prime cost
Advanced Plastics makes plastic cups. The cups sell for $2.29 each. The variable costs per cup include $0.79 for supplies and $1.01 for direct labor. Fixed costs total $575,000. What is the break-even point in number of cups?
1,173,469
Ace Manufacturing produces o-rings for the military. The quality control inspector checked 75 rings and found 4 that were defective. The process is “out of control” if more than 4 percent of the sample is defective.
Compare the percent defective to the percent allowable.
5.33% is more than 4%. The process is out of control.
Sophie Cross punches washers out of metal sheets. Every 2 hours she takes a 10-minute break. She averages 50 seconds per sheet of metal. How many sheets can Cross punch every 2 hours?
132
Frank Meer works as a quality control technician. A time study conducted by the company showed that Meers spent a typical day as follows: 1.25 hours conducting phone calls; 3.5 hours inspecting goods; 1 hour eating lunch; 0.5 hours socializing with employees; and 2.25 hours preparing reports. What percentage of Meer’s day is spent inspecting goods?
41.18%
Ben Shah is a plastic molder for Advanced Plastics. He can mold 325 cups from 1 container of plastic. Each container of plastic costs $3.95. Shah’s machine molds 2 cups every 5 minutes. The direct labor cost is $14.29 per hour. What is the prime cost per cup?
A. 0.607
B. 3.139
C. 0.031
D. 123.4
. Simplified Homes manufactures modular homes. The fixed costs total $1,332,477. The base price of each home is $135,000 and the base variable cost is $99,531 per home. What is the break-even point in number of modular homes?
38
Twice a day Tanisha Williams inspects metal washers for defects. Her last check yielded 47 defective washers out of 1,200. If more than 4 percent is defective, the process is out of control. What is the percent defective? Is the process in or out of control?
3.92%; in control
Tran Nguyen is a plastic cup molder. Every hour he takes a 5-minute break. He averages 6.5 minutes per cup. How many cups can Nguyen mold in a 4-hour period?
33.85
Using the details outlined in Problem 5 above, what percentage of Meer’s time is spent preparing reports?
26.47%
Amy Van Pelt works for Valley Tarp, a manufacturer of plastic tarps. Each roll of plastic costs $27.75 and produces 96 tarps. Van Pelt can cut 1 tarp every 20 seconds. The direct labor charge is $17.21 per hour. What is the prime cost per tarp?
A. $0.289
B. $0.096
C. $6.026
D. $0.385
Valley Tarp manufactures plastic tarps. It has total fixed costs of $817,359. The selling price of each tarp is $21.95. The variable cost per tarp is $12.17. What is the break-even point in number of tarps?
A. 37,237
B. 67,162
C. 83,575
D. 817,359
Every 2 hours the quality control inspector at Valley Tarp checks a random sample of 48 tarps for defects. The process is considered out of control if more that 5 percent are defective. Yesterday she got the following results: 9 A.M.—1 defective; 11 A.M.— 3 defective; 1 P.M.—1 defective; 3 P.M.—2 defective; 5 P.M.—4 defective. How many times was the process out of control?
Twice
Stan Riddle is employed as a press operator by Valley Tarp, a manufacturer of plastic tarps. He works a 10-hour shift, 4 days a week. Every day he gets 45 minutes off for lunch and a 7-minute break 3 times a day. He averages 10.2 minutes per tarp. How many tarps can Riddle produce per week?
209.4
Amy Van Pelt works for Valley Tarp. A time study showed she spent a typical day as follows: 2 hours talking on the phone; 45 minutes at lunch; 15 minutes taking breaks; 11 _ 4 hours filing; 33 _ 4 hours doing data entry. What percentage of Van Pelt’s time is spent doing data entry and filing?
62.5%