10

Inspection time: 1.
5 days
Processing time: 3.0 days
Move time: 2.5 days
Calculate the delivery cycle time and manufacturing cycle efficiency.
The average labor cost per unit for the first batch produced by a new process is P120. The cumulative
average cost after the second batch is P72 per product. Using a batch size of 100 and assuming the
learning curve continues, the total labor cost of four batches will be ___.
(BD) A construction company has just completed a bridge over the Visayan area. This the first bridge the
company ever built and it required 100 weeks to complete. Now having hired a bridge construction crew
with some experience, the company would like to continue building bridges. Because of the investment
in heavy machinery needed continuously by this crew, the company believes it would have to bring the
average construction time to less than one year (52 weeks) per bridge to earn a sufficient return on
investment. The average construction time will follow an 80% learning curve. To bring the average
construction time (over all bridges constructed) below one year per bridge, the crew would have to
build approximately:
(HTi) Consider these facts for Company A:

Rework time: 2,760 hours
Waiting time: 3,880 hours
Product assembly: 26,400 hours
Units produced: 1,320 units
Throughput efficiency amounts to
(RB) One of the products manufactured by McAllen Company is a plastic disk. The information below
relates to the Disk Production Department:
Good units produced: 200,000
Units started in production: 250,000
Processing time (budgeted hours): 425
Processing time (total hours): 400
Value-added processing time: 300
What is the process quality yield in the Disk Production Department?
(HTi) Titan Company estimates that providing employees with a new health insurance package with an
additional cost of P34,900 will increase productivity by 6%. Current production is at 12,000 units where
selling price is P190, total cost amounts to P150 which is inclusive of P120 in variable costs per unit.
Determine the net increase in income if the 6% additional productivity is realized.
(HTi) Advanced Company estimates that spending P29,750 in employee training will result in reducing
variable production costs by six percent and increasing sales by 12.5%. Production and sale amount to
4,400 unit; selling price is P200 per unit; and total product cost is P150 (60% of which is variable cost).
The advantage of this project amounts to:
(RB) Rio Hondo Company is a manufacturer of electronic components. The following manufacturing
information is available for the month of May:
Good units manufactured: 40,000
Value-added hours of manufacturing time: 20,000
Total units manufactured: 50,000
Total hours of manufacturing time: 30,000
What is the throughput per hour?
(UNi) Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is P55 and P60 per
unit respectively and actual units sold in 2013 and 2014 are 25,000 and 30,000 units, then revenue
effect of price recovery will be:
(BD) The product cell for Crane Company had budgeted conversion costs of P420,000 for the year. The
cell is planned to be available 2,100 hours for production. Each unit requires P12.50 of materials costs.
The cell started and completed 700 units. The cell process time for the product is 15 minutes per unit.
(HTi) Tacit Company believes that spending P7,500 in employee training will result in reducing waste by
40%. The current production amounts to 10,000 units with a cost of P185,000 inclusive of P45,000 in
fixed costs and a waste volume which amounts to 8% of variable costs. During the next period when
employee training was implemented costs were at the same level but output amounted to 12,000 units
with a total waste amounting to 5% of variable costs. The net savings/loss from this action amounts to:
(BD) At the end of the 2019, Suave Corporation implemented a new labor process and redesigned its
product with the expectation that labor usage efficiency would increase. Now, at the end of 2020, the
president wants an assessment of the changes on the company's productivity. The data needed for the
assessment are as follows:
2019 2020
Output 30,000 38,000
Output prices P12 P12
Materials (lbs.) 10,000 10,400
Materials unit price P8 P7
Labor hours 14,000 15,000

Labor rate per hour P6 P7
Power (KwH) 12,000 13,000
Price per KwH P3 P4
By how much did profits change as a result of productivity changes in materials?

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Inspection time: 1.

(HTi) Consider these facts for Company A:

Output 30,000 38,000

Output prices P12 P12

Materials (lbs.) 10,000 10,400

Materials unit price P8 P7

Labor hours 14,000 15,000

Power (KwH) 12,000 13,000

Price per KwH P3 P4

By how much did profits change as a result of productivity changes in materials?

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