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Exam 26: Lean Manufacturing and Activity Analysis

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Question 61

True/False

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Setups are a significant time-consuming activity in traditional production environments.

A) True
B) False

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Question 62

Multiple Choice

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From the above schedule of activity costs,determine the internal failure costs.

A) $37,000
B) $25,000
C) $8,000
D) $33,000

E) B) and C)
F) A) and C)

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Question 63

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Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:

Peters Manufacturing Co.operates in a lean manufacturing environment.The company had scheduled production of 95,000 units during February in its Y12 cell.Actual February production totaled 88,200 units.Peters had budgeted conversion costs for February totaling $900,000 and budgeted production hours totaling 2,000. ​ Compute Peters' budgeted cell conversion cost per unit for Cell Y12.

Which of the following are features of the lean manufacturing system? ​ (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 local college is aggressively working to reduce the time it takes students to enroll for each semester.Which of the following changes would not help achieve this goal?

Which of the following is characteristic of a lean production layout?

Within-batch wait time increases total lead time.

Which of the following results in long lead time?

A process-oriented layout segments production facilities into functional departments.

Accounting for lean operations requires fewer transactions because

Employee involvement does not include performing any indirect manufacturing functions.

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

From the foregoing information,determine the manufacturing cost per unit.

From the above schedule of activity costs,determine the prevention costs.

In a lean environment,the journal entry to record conversion costs would include a debit to the manufacturing overhead control account.

Nonfinancial accounting information is used more often for long-term operating decisions than is financial information.

Reducing wait time is directly linked to reducing inventory.

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.

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