Vernon Inc. has analyzed the setup time on its computer-controlled lathe. The setup requires changing the type of fixture that holds a part. The average setup time has been 140 minutes, consisting of the following steps:
Turn off machine and remove fixture from lathe 15 minutes
Go to tool room with fixture 15
Record replacement of fixture to tool room 18
Return to lathe 20
Clean lathe 20
Return to tool room 20
Record withdrawal of new fixture from tool room 12
Return to lathe 15
Install new fixture and turn on machine 5
Total setup time 140 minutes
Required:
a. Why should management be concerned about improving setup time?
b. Which of the following are the ways to improve Hammond Inc.'s setup time?1. limit the trips to the tool room to one round trip, rather than two.2. change the location of the fixtures to reduce lathe setup time.3. eliminate the tool room and instead locate the tools in a visible location near the lathe.4. change the entire lathe room layout, so that fewer steps are required to turn the lathe on and off, as well as clean the lathe and change fixtures for the lathe.5. All of these are ways to improve setup time. c. How much time would be required for a setup, using your suggestion in (b)?

During the year, the delph company had no beginning or ending inventories and it started, completed, and sold only two jobs—job d-75 and job c-100. it provided the following information related to those two jobs: job d-75: molding fabrication total direct materials cost $ 375,000 $ 325,000 $ 700,000 direct labor cost $ 200,000 $ 160,000 $ 360,000 machine-hours 15,000 5,000 20,000 job c-100: molding fabrication total direct materials cost $ 300,000 $ 250,000 $ 550,000 direct labor cost $ 175,000 $ 225,000 $ 400,000 machine-hours 5,000 25,000 30,000delph had no overapplied or underapplied manufacturing overhead during the year. assume delph uses a plantwide overhead rate based on machine-hours.1-a. compute the predetermined plantwide overhead rate.1-b. compute the total manufacturing costs assigned to job d-70 and job c-200.1-c. if delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for job d-70 and job c-200? 1-d. what is delph's cost of goods sold for the year? assume delph uses departmental overhead rates based on machine-hours.2-a. compute the predetermined departmental overhead rates.2-b. compute the total manufacturing costs assigned to job d-70 and job c-200.2-c. if delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for job d-70 and job c-200? 2-d. what is delph's cost of goods sold for the year?