EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
4. a. and b. Month April May June Throughput time—hours: Processing time (x) ... 2.6 2.5 2.4 Inspection time... 1.3 0.9 0.1 Move time ... 1.9 1.4 0.6 Queue time ... 8.2 5.2 1.9 Total throughput time (y) ... 14.0 10.0 5.0 Manufacturing cycle efficiency (MCE): Processing time (x) ÷ Throughput time (y) ... 18.6% 25. 0% 48.0% Note that the manufacturing cycle efficiency has improved dramatically over the last three months. This means that non-value-added time is be-ing eliminated.