Name : Yusuf Raharja

IDN : 008201600066

Class : Accounting 2

1. PROBLEM A throughput time, or manufacturing cycle time, MCE, Delivery Cycle.

a. Throughput time, or manufacturing cycle time is The amount of time required

to turn raw materials into completed products.
Throughput time = Process time + Inspection time + Move time + Queue time

Process time = the amount of time work is actually done on the product.

Inspection time = the amount of time spent ensuring that the product is not
defective.
Move time = the time required to move materials or partially completed
products from workstation to workstation.
Queue time = the amount of time a product spends waiting to be worked on,
to be moved, to be inspected, or to be shipped.

b. Manufacturing Cycle Efficiency

Through concerted efforts to eliminate the non-value-added activities of
inspecting, moving, and queuing, some companies have reduced their
throughput time to only a fraction of previous levels. In turn, this has helped to
reduce the delivery cycle time from months to only weeks or hours.

MCE = Value added time (process time) / Throughput time

c. Delivery cycle time

The amount of time from when a customer order is received to when the completed order
is shipped is called delivery cycle time. This time is clearly a key concern to many
customers, who would like the delivery cycle time to be as short as possible. Cutting the
delivery cycle time may give a company a key competitive advantage and may be
necessary for survival.

Delivery cycle time = Wait time + Throughput Time

2. PROBLEM B
Job Standard Hours Standard Rate Standard Cost
Machine 3,4 Hours Rp. 600.000 Rp. 2.040.000
Maintenance

1. If the total labor spending variance is Rp.10.000.000 unfavorable, and the rate
variance is Rp. 8.160.000 favorable, then the efficiency variance must be
Rp.18.160.000 unfavorable, because the rate and efficiency variances taken
together always equal the spending variance. Knowing that the efficiency variance
is Rp.18.160.000 unfavorable, one approach to the solution would be:

Efficiency variance = SR (AH – SH)

Rp.600.000 per hour (AH – 340 hours*) = Rp.18.160.000 U
Rp.600.000 per hour AH – Rp. 204.000.000 = Rp.18.160.000 **
Rp.600.000 per hour × AH = Rp. 204.000.000 + Rp.18.160.000
AH = Rp. 222.160.000 ÷ Rp.600.000 per hour
AH = 370,27 hours

* 100 maintenance × 3,4 hours per job = 340 hours

** When used with the formula, unfavorable variances are positive and favorable
variances are negative.

2. Rate variance = AH (AR – SR)

370,27 hours (AR – Rp.600.000 per hour) = Rp. 8.160.000 F
370,27 hours × AR – Rp. 222.162.000 = – Rp. 8.160.000 *
370,27 hours × AR = Rp. 222.162.000 – Rp. 8.160.000
AR = Rp. 214.002.000 ÷ 370,27 hours
AR = Rp. 577.962 per hour

*When used with the formula, unfavorable variances are positive and
favorable variances are negative.
3. PROBLEM D

Production Budget for Quarter

May June July August September October

Budgeted 100.000 90.000 110.000 100.000 90.000 85.000
Sales
Add : 18.000 22.000 20.000 18.000
Desired
Ending
Inventory
Total 118.000 112.000 130.000 118.000
Needs
Less : 25.000 18.000 22.000 20.000
Begining
Inventory
Required 93.000 94.000 108.000 98.000
Production

The number of unit to be Produced for the quarter in total

= 93.000 + 94.000 + 108.000 + 98.000

= 393.000 unit