Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The compa nformation for the machine whose limited capacity is prohibiting the company from producing and sellin Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) Required: and 2 With the 18,550 minutes 26,500 minutes 4.20 units per minute 6 units per minute 54,537 units 77,910 units do Querall couinmont offectiveness calculate the following

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
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Chapter20: Cost-volume-profit Analysis
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Problem 12-12 (Algo) Overall Equipment Effectiveness [LO12-3]
Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following
information for the machine whose limited capacity is prohibiting the company from producing and selling additional units:
Actual run time this week
Machine time available per week
Actual run rate this week
Ideal run rate
Defect-free output this week
Total output this week (including defects)
18,550 minutes
26,500 minutes
1-a. Utilization rate
1-b. Efficiency rate.
1-c. Quality rate
1-d. Overall equipment effectiveness
2-a. Utilization loss in units
2-b. Efficiency loss in units
2-c. Quality loss in units
4.20 units per minute
6 units per minute
54,537 units
77,910 units
Required:
1. and 2. With respect to the company's overall equipment effectiveness, calculate the following:
Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole
number.
Transcribed Image Text:Problem 12-12 (Algo) Overall Equipment Effectiveness [LO12-3] Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 18,550 minutes 26,500 minutes 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 4.20 units per minute 6 units per minute 54,537 units 77,910 units Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number.
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