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Exam 27: Lean Manufacturing and Activity Analysis

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Question 21

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Connally Company's Payroll Department required that every time card be checked twice to ensure pay accuracy. The company has 1,000 employees and has determined that the checks cost the company $8,000 per year. It has decided to change this policy and only check those names that appear on the exceptions report and a random check on the entire payroll. Currently, only 15% of the payroll is evaluated each payroll. Determine the inspection activity cost per employee on the 1,000 employees both before and after the improvement.

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Inspection activity before imp...

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Question 22

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Alaskan Pattern Company makes dressmakers' patterns using a machine that stamps the pattern outline onto tissue paper. The stamping center produced 40,000 patterns in August, with a machine time per pattern of 20 seconds. Annual budgeted cell conversion costs were as follows: Alaskan planned 2,500 total machine hours for the year.Compute Alaskan's budgeted cell conversion cost rate for the year.

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

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

From the foregoing information, determine the production costs transferred to Cost of Goods Sold during August.

Traditional manufacturing emphasizes all of the following except

Pull manufacturing is also called make to order manufacturing.

The lean philosophy views inventory as a necessary buffer to protect against process problems.

Match each of the following activities with the appropriate quality cost classification (a-d). -Controlling vendor quality A)Prevention cost B)Appraisal cost C)Internal failure cost D)External failure cost

The lean philosophy attempts to reduce setup times, which will

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

Under a lean environment, employees have the responsibility and authority to

Lead time is the elapsed time between starting a unit of product into the beginning of a process and its completion.

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

The cell conversion cost rate is very similar to the predetermined factory overhead rate because both include only factory overhead costs.

Match each of the following activities with the appropriate quality cost classification (a-d). -Disposing of scrap A)Prevention cost B)Appraisal cost C)Internal failure cost D)External failure cost

Schedule of Activity Costs ​ -Which of the following is a value-added activity?

Match each of the following activities with the appropriate quality cost classification (a-d). -Testing products A)Prevention cost B)Appraisal cost C)Internal failure cost D)External failure cost

In a lean environment, the journal entry to record raw materials purchases would include a credit to the raw materials inventory account.

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.