Compute the theoretical velocity


Response to the following problem:

Prakesh Company has the following data for one of its manufacturing cells:

Maximum units produced in a month: 50,000 units

Actual units produced in a month: 40,000 units

Hours of production labor in one month: 10,000 hours

Required:

1. Compute the theoretical cycle time (in minutes).

2. Compute the actual cycle time (in minutes).

3. Compute the theoretical velocity (in units per hour).

4. Compute the actual velocity (in units per hour).

 

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Managerial Accounting: Compute the theoretical velocity
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