Determine the utilization and efficiency for each of the following situations. a. A loan processing operation that processes an average of 3 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 7 loans per day.
b. A furnace repair team that services an average of 2 furnaces a day if the design capacity is 6 furnaces a day and the effective capacity is 5 furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems

Answers

Answer 1

Answer:

a. Utilization= 30%

Efficiency= 42.85%

b. Utilization= 33.33%

Efficiency=40%

c. . Based on the calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.

Explanation:

a. Calculation to Determine the utilization and efficiency for each

Calculation for utilization

Using this formula

Utilization = (Actual Output/Design Capacity)*100

Let plug in the formula

Utilization= (3/10)*100

Utilization= 30%

Using this formula to calculate for efficiency

Let plug in the formula

Efficiency = (Actual Output/Effective Capacity)*100

Efficiency= (3/7)*100

Efficiency= 42.85%

b. Calculation for utilization

Using this formula

Utilization = (Actual Output/Design Capacity)*100

Let plug in the formula

Utilization= (2/6)*100

Utilization= 33.33%

Using this formula to calculate for efficiency

Let plug in the formula

Efficiency = (Actual Output/Effective Capacity)*100

Efficiency= (2/5)*100

Efficiency=40%

c. In a situation where the design capacity is High this means that there is likelyhood that the utilization could be lesser despite the efficiency was high.

Therefore based on the above calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.

Answer 2

Answer:

Utilization and efficiency are calculated for loan processing and furnace repair operations. Higher efficiency does not always mean higher utilization.

a. To determine the utilization of the loan processing operation, we divide the average number of loans processed per day by the design capacity: 3 loans / 10 loans = 0.3 or 30%. The efficiency can be found by dividing the average number of loans processed per day by the effective capacity: 3 loans / 7 loans = 0.43 or 43%.

b. Utilization for the furnace repair team is found by dividing the average number of furnaces serviced per day by the design capacity: 2 furnaces / 6 furnaces = 0.33 or 33%. Efficiency is calculated by dividing the average number of furnaces serviced per day by the effective capacity: 2 furnaces / 5 furnaces = 0.4 or 40%.

c. No, systems with higher efficiency ratios do not always have higher utilization ratios. Efficiency measures how well resources are utilized, while utilization measures the percentage of available capacity being used. For example, a system with low efficiency may still have high utilization if it is operating at or near its design capacity. Conversely, a system with high efficiency may have low utilization if it is operating well below its design capacity.

Learn more about Utilization and efficiency here:

brainly.com/question/33124152

#SPJ3

Related Questions

Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities their activity cost rates as follows:Ordering $95 per purchase orderDelivery and receipt of merchandise $76 per deliveryShelf-stocking $19 per hourCustomer support and assistance $0.15 per item soldThe revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:Baked Goods Milk and Fruit Juice Frozen ProductsFinancial data Revenues $60,000 $66,500 $50,500Cost of goods sold $41,000 $51,000 $32,000Store support $12,300 $15,300 $9,600Activity-area usage (cost-allocation base) Ordering (purchase orders) 44 24 14Delivery (deliveries) 120 60 36Shelf-stocking (hours) 170 150 20Customer support (items sold) 15,400 20,200 7,960Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.Required:1. Use the simple costing system to prepare a product-line profitability report for FS.2. Use the ABC system to prepare a product-line profitability report for FS.3. What new insights does the ABC system in requirement 2 provide to FS managers?
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:Total machine-hours 30,400Total fixed manufacturing overhead cost $425,600Variable manufacturing overhead per machine-hour $5Recently, Job T687 was completed with the following characteristics:Number of units in the job 10Total machine-hours 20Direct materials $590Direct labor cost $1,180The unit product cost for is closest to:a. $415b. $218c. $118d. $109
Sheridan Company's prepaid insurance was $192000 at December 31, 2021 and $89600 at December 31, 2020. Insurance expense was $62000 for 2021 and $53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis
Oriole Company has collected the following information related to its December 31, 2017, balance sheet.Accounts receivable $16,000Accumulated depreciation—equipment 46,700Cash 11,000 Equipment $173500Inventory 64,500Supplies 5,000Requried:Prepare the assets section of Oriole's balance sheet.
Sue has transferred her transferable interest of the partnership business to her creditor to discharge her debt. however, sue is an efficient manager and she still manages the business, even after the transfer. is she still a partner?

an employee of a company is being paid to assist in the sale of stock options to the company's employees and will recieve a bonus based on sales results. this company employee

Answers

Answer:

An employee of a company who is being paid to assist in the sale of stock options to the company's employees and receives a bonus based on sales results is referred to as an Agent. This is in accordance with Uniform Securities Act.

Explanation:

The Uniform Securities Act refers to an employee of a company who is paid to assist in the sale of stock option to the company's employees and receives a bonus based on sales results as an agent. Such an employee is required to register with the state.

Ramon sells two enchiladas and three tacos for $\$$2.50 and he sells three enchiladas and two tacos for $\$$2.70. Assuming a fixed price per item, what is the cost, in dollars, of three enchiladas and four tacos

Answers

Answer:

3.54 dollars

Explanation:

2.50 = 250 cents

2.70 = 270 cents

2e + 3t = 250

e = (250 - 3t) / 2

3((250 -3t) / 2) + 2t = 270

(750 - 9t) / 2 + 2t = 270

750 - 9t + 4t = 540

750 - 5t = 540

210 = 5t

t = 42

e = (250 - 3t) / 2

e= (250 - 126) / 2

e = 124 / 2

e = 62

3e + 4t = 3(62) + 4(42) = 354 cents or 3.54 dollars

The cases filed with HR at The Cross Company are concerning in that most of the classes that are protected by the CRA may have been included. During a meeting with the HR team, Mrs. Jackson reminds her employees that the Civil Rights Act as amended forbids discrimination on all of the following excepta) sex.
b) religion.
c) race.
d) color.
e) political preference.

Answers

Answer: Political Preference

Explanation: You cannot judge anyone based on their political views.

Marion Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2017. The board of directors declares and pays a $65,000 dividend in 2018. What is the amount of dividends received by the common stockholders in 2018

Answers

Answer:

The amount of dividends received by the common stockholders in 2018 is $40,000

Explanation:

Number of shares = 5000 shares

Outstanding shares = 20,000 shares

The board of directors declares and pays a $65,000 dividend in 2018

The amount of dividends received by the common stockholders in 2018

= $65,000 - dividend paid to preferred stocks

Where, dividend paid to preferred stocks = 5,000 × 5% × $100

= $25,000

Therefore, we have;

=$65,000 - $25,000 = $40,000

feels energized coming to work and loves her office environment. She feels comfortable asking fellow workers for help, and they are more than happy to oblige. The team even has dinners together every Thursday after work. What aspect of the company is Kristin happy with

Answers

Answer:

a. Organization culture

Explanation:

Organization culture refers to the working culture in an organization in which the employees behavior, rules, regulations, procedures, policies, plans are applied

Other than this, it also involves incentive schemes, flexible time, cab service, medical insurance, and other perks

Since in the given situation, she feels energized and lover her office environment also they have team dinners on every Thursday after work

So this represents the organization culture

Investments and loans base their interest calculations on one of two possible methods: the interest and the interest methods. Both methods apply three variables-the amount the interest rate, and the investment or deposit period-to the amount deposited or invested in order amount of interest. However, the two methods differ in their relationship between the variables. Assume that the variables r, n, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? FV = PV + (PV Times r Times n) FV = PV Times (1 + r)^n FV = (1 + r)^n/PV Simple interest? FV = PV + (PV Times r Times n) FV = PV/(1 Times r Times n) FV = PV - (PV Times r Times n) Identify whether the following statements about the simple and compound interest methods are true or false. The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. Laura is willing to invest $45, 000 for eight years, and is an economically rational investor. She has identified three investment alternatives (L, M, and P) that vary in their method of calculating interest and in the annual interest rate offered. Since she can only make one investment during the eight-year investment period, complete the following table and indicate whether Laura should invest in each of the investments.

Answers

FV = PV Times (1 + r)^n
FV = PV + (PV Times r Times n)
False
False
True
Laura should invest in investment P

Investment = L FV = $66,485.49 Make this investment? No

Investment = M FV = $59,400 Make this investment? No

Investment = P FV = $77,318.37 Make this investment? Yes

Explanation:

Compound interest: FV = PV Times (1 + r)^n
Simple interest: FV = PV + (PV Times r Times n)
The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. False
After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. False
All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. True

Investment = L

Interest rate and method = 5% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.05)^8

FV = 45000 * (1.05)^8

FV = 45000 * 1.477455 = $66,485.49

Make this investment? Yes / No

Investment = M

Interest rate and method = 4% simple interest

Expected Future Value, FV = PV + (PV * r * n)

FV = 45000 + (45000 * 0.04 * 8)

FV = 45000 + 14400 = $59,400

Make this investment? Yes / No

Investment = P

Interest rate and method = 7% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.07)^8

FV = 45000 * (1.07)^8

FV = 45000 * 1.718186 = $77,318.37

Make this investment? Yes / No

Since she can only make one investment during the eight-year investment period, Laura should invest in investment P

Final answer:

Compound interest is calculated using the equation FV = PV imes (1 + r)^n, and simple interest is calculated using the equation FV = PV + (PV imes r imes n). Compound interest allows for earning interest on any interest earned in prior periods. The future value based on compound interest can exceed the future value based on simple interest.

Explanation:

The equation that represents the calculation of a future value (FV) using compound interest is: FV = PV imes (1 + r)^n.

The equation that represents the calculation of a future value (FV) using simple interest is: FV = PV + (PV imes r imes n).

The statement that the process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods is true.

The statement that after the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest is false.

The statement that all other factors being equal, both the simple interest and compound interest methods will accrue the same amount of earned interest by the end of the first year is true.

To determine whether Laura should invest in each of the investments, we need more information about the specific investment alternatives (L, M, and P) and their annual interest rates.

Learn more about Interest Calculation here:

brainly.com/question/35896917

#SPJ3

Other Questions

A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)

Prepaid Rent. On September 1 of the current year, the company prepaid $44,400 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $44,400.Prepaid RentStep 1: Determine what the current account balance equals.Step 2: Determine what the current account balance should equal.Step 3: Record the December 31 adjusting entry to get from step 1 to step 2

According to Gardner, intelligence can be measure by a person havinga. the ability to create or find solutions to problems by gathering new knowledgeb. the ability to create a valued product or serviceC. Skills that allow them to solve problems in lifed. all of the above

On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $70,000 and $1,250, respectively. During 2022, Larry's wrote off $2,675 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,650 at December 31, 2022. Bad debt expense for 2022 would be: