Question 1

From the above schedule, calculate the internal failure costs.

Accepted Answer

The answer of   
From the above schedule, calculate...

Question 2

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units.
From the foregoing information, determine the production costs transferred to Cost of Goods Sold during August.

Accepted Answer

A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600 
A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600

Question 3

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units.
From the foregoing information, determine the manufacturing cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,870.50 
A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,870.50

Question 4

Which of the following are features of the lean manufacturing system?

Accepted Answer

A)  maintaining excess inventory to ensure that products will always be available 
B)  cross training of employees 
C)  giving employees additional authority and responsibility 
D)  product-oriented layout 
E)  increased set-up time 
A)  maintaining excess inventory to ensure that products will always be available 
B)  cross training of employees 
C)  giving employees additional authority and responsibility 
D)  product-oriented layout 
E)  increased set-up time

Question 5

Extreme Wreaths, Inc.  makes wreaths in batch sizes of 15 at a time. The cutting & assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process. 
In a effort to improve the lead time, the company has tried reducing the batch size to 10 units. The new process is as follows: cutting & assembly process - 8 minutes. The decorating process is still 7 minutes per wreath. It takes 5 minutes to move the wreaths from the cutting & assembly process to the decorating process. 
(a) Compute the value-added, non-value-added, and the total lead time of the wreath process for both the old and the new manufacturing process. 
(b) Compute the value-added ratio for both the old and new process.  Round to the nearest decimal.

Accepted Answer

(a) @#IMG-DLM& @#IMG-DLM& 
(b) Value-added ratio (

Question 6

Lean manufacturing philosophy reduces all of the following except

Accepted Answer

A)  inventory 
B)  setup time 
C)  lead time 
D)  conversion costs 
A)  inventory 
B)  setup time 
C)  lead time 
D)  conversion costs

Question 7

In a lean system, there are fewer transactions to record than there are in a traditional system.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is characteristic of the lean system?

Accepted Answer

A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above. 
A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above.

Question 9

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Accepted Answer

A) True 
 B)False

Question 10

In a lean system, indirect labor is traced directly to product cells.

Accepted Answer

A) True 
 B)False

Question 11

Costs of controlling quality include prevention costs and internal failure costs.

Accepted Answer

A) True 
 B)False

Question 12

In a lean system, direct labor is included in conversion costs.

Accepted Answer

A) True 
 B)False

Question 13

Lead time includes both value-added time and non-value-added time.

Accepted Answer

A) True 
 B)False

Question 14

Long setups and large batch sizes result in smaller inventories.

Accepted Answer

A) True 
 B)False

Question 15

Lead time reduction can be a cost-saving goal for any processed item.

Accepted Answer

A) True 
 B)False

Question 16

How are the objectives of lean manufacturing achieved?

Accepted Answer

A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above 
A)  Product-oriented production layout 
B)  Employee involvement 
C)  Supplier partnering 
D)  All of the above

Question 17

In a push manufacturing system, raw materials are released to production based on actual customer orders.

Accepted Answer

A) True 
 B)False

Question 18

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

Accepted Answer

A) True 
 B)False

Question 19

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 20

A backflush accounting system uses work in process inventories as control points between each process step.

Accepted Answer

A) True 
 B)False

From the above schedule, calculate the internal failure costs.

Which of the following are features of the lean manufacturing system?

Lean manufacturing philosophy reduces all of the following except

In a lean system, there are fewer transactions to record than there are in a traditional system.

Which of the following is characteristic of the lean system?

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

In a lean system, indirect labor is traced directly to product cells.

Costs of controlling quality include prevention costs and internal failure costs.

In a lean system, direct labor is included in conversion costs.

Lead time includes both value-added time and non-value-added time.

Long setups and large batch sizes result in smaller inventories.

Lead time reduction can be a cost-saving goal for any processed item.

How are the objectives of lean manufacturing achieved?

In a push manufacturing system, raw materials are released to production based on actual customer orders.

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

A backflush accounting system uses work in process inventories as control points between each process step.

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 12: Lean Manufacturing and Activity Analysis

From the above schedule, calculate the internal failure costs.

Which of the following are features of the lean manufacturing system?

Lean manufacturing philosophy reduces all of the following except

In a lean system, there are fewer transactions to record than there are in a traditional system.

Which of the following is characteristic of the lean system?

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

In a lean system, indirect labor is traced directly to product cells.

Costs of controlling quality include prevention costs and internal failure costs.

In a lean system, direct labor is included in conversion costs.

Lead time includes both value-added time and non-value-added time.

Long setups and large batch sizes result in smaller inventories.

Lead time reduction can be a cost-saving goal for any processed item.

How are the objectives of lean manufacturing achieved?

In a push manufacturing system, raw materials are released to production based on actual customer orders.

It is easier to quantify costs of controlling quality than the costs of failing to control quality.

In a lean environment, raw materials are delivered more frequently than in a traditional environment.

A backflush accounting system uses work in process inventories as control points between each process step.

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters