A machine tool is used to machine parts in batches. In one batch of interest, the starting piece is a casting that costs = $5.00 each. Batch quantity = 40. The actual machining time in the operation = 6.86 min. Time to load and unload each work piece = 2.0 min. cost of the cutting tool = $3.00 and each tool must be changed every 10 pieces. Tool change time = 1.5 min. Setup time for the batch = 1.75 hr. Hourly wage rate of the operator = $16.00/hr, and the applicable labor overhead rate = 50%. Hourly equipment cost rate = $22.00/hr, which includes overhead. Assume availability = 100% and scrap rate = 0. Determine: The cycle time for the piece Average hourly production rate when setup time is figured in; and cost per piece.
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