ZuoTi.Pro
Question

Q.3 Answer all parts Total 20 marks] The Engineering Manager in A Company Ltd. is responsible for maximising the profit from four product lines A, B, C and D. They have been provided with the following information; Direct materials (kgs) 80 90 95 70 Direct labour (hrs) Welding Assembly Finishing 4.5 9.5 4 3.5 4 8 4 4.5 4 Selling price per unit (E) 1500 2500 3000 1000 300 450 Max.sales for the period (in units) 400 280 250 Budgeted production (in units) 250 250 250 Additional information is also provided i. There are no closing stocks ii. Material costs are estimated at £5.00/kg ii. The labour rate for the assembly and finishing operations is £15.00/hr and £20/hr for the welding operation iv. The skilled labour required for the welding process is in short supply although there is just enough to meet the current budgeted production (a) Prepare a statement showing the contribution from each product based on the budgeted production (b) Calculate the contribution per unit of limiting factor (c) Prepare a statement showing the maximum total contribution that can be (8 marks) (2 marks) obtained. Explain your rationale (10 marks)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Σ AutoSum Cut ー E ゴWrap Text Sort &Find & Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ 2 ClearFe Select Edting ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Format Painter Cells Number Alignment Clipboard し12 Formula Bar TOTAL LABOUR HOURS AVAILABLE IN WELDING DEPARTMENT PRODUCT LABOUR BUDGETED NOTE 1 TOTAL LABOUR HOURS XPY HOURS PRODUCTION 250 250 250 250 1000 1125 1125 875 4125 4.5 3.5 10 TOTAL LABOUR HOURS = 12 13 14 15 16 17 18 19 CRDIT POLICY RATIO/CCAI CVP show -BEP MDURATION . MULTIPLE GROWTH , RR-NR-BOND ( loan 08-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Alignment Number Cells Formula Bar 12 13 14 15 16 17 18 19 20 21 STATEMENT SHOWING CONTRIBUTION BASED ON BUDGETED PRODUCTION BUDGETED PRODUCTION SELLING PRICE ESS: DIRECT MATERIA ESS: WELDING LABOUR (RATE X NO OF HOURS) ESS: ASSEMBLY LABOUR 250 1000 350 70 [204] 020 4.5] [20 3.5] 250 1500 400 80 250 2500 450 90 250 3000 475 90 120 135 142.5 15*85915*9.5 15*6] ESS: FINISHING LABOUR 60 23 24 25 26 27 28 29 30 1 154]5415 4] 15 3] 445 CONT CONTRIBUTION PER UNIT (A-B-C-D-E) TOTAL CONTRIBUTION 840 1765 2232.5 (P* CONT) 210000 441250 558125 111250 | MDURATION MULTIPLE GROWTH , RR-NR-BOND , loan show -BEP CRDIT POLICY , KE / RATIO CCA I CVP 08-01-2019Home nert Page Layout Formulas Data Review View dd-Ins as Cut Σ AutoSum 11.A. A, 9- Fwap Text General copy ▼ タ.Δ. i s『困Merge & Center. $,%, ,Man Conditional Format Cell B l U. 二. Insert Delete Format チFormat Painter 2 ClearFe Select Edting Clipboard Alignment Number Cells W44 28 29 30 31 32 CONTRIBUTION PER UNIT OF LIMITING FACTOR CONTRIBUTION PER UNIT ASSEMBLY LABOUR HOURS CONTRIBUTION PER UNIT OF LIMITING FACTOR 445 M 3.5 N 840 1765 4.5 2232.5 4.5 210 392.22 496.11 127.14 M/N 34 35 36 37 38 39 40 41 42 43 RANK 4 AS PER RANK, FIRST C, THEN B, THEN A AND THEN D SHOULD BE PRODUCED FOR MAXIMUM PROFIT (HIGHEST CONTRIBUTION PER UNIT OF LIMITING FACTOR IS RANKED 1 AND SO ON) TOTAL LABOUR HOURS AVAILABLE AS PER NOTE 1 LESS: LABOUR HOURS USED BY C HOURS LEFT LESS: LABOUR HOURS USED BY B HOURS LEFT LESS: LABOUR HOURS USED BY A LABOUR HOURS LEFT 4125 1260 2865 1350 1515 1600 85 280 X 4.5 (MAXIMUM SALES X CONTRIBUTION PER UNIT) (MAXIMUM SALES X CONTRIBUTION PER UNIT) (MAXIMUM SALES X CONTRIBUTION PER UNIT) 300 X 4.5 400 X 4 45 SO WE CAN MAKE ONLY 1515/4 MULTIPLE GROWTH RR-NR-BOND loan options 46 378 UNITS OF A NO UNIT OF D WILL BE PRODUCED DURATION show-BER-performance sensit ty CRDIT POLICY KE RATIO CCA CVP 08-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Alignment Number Cells 50 51 52 53 54 CONTRIBUTION PER UNIT MAXIMUM PRODUCTION TOTAL CONTRIBUTION 1765 2232.5 280 317520 529500 625100 840 445 378 300 0 1472120 56 57 58 59 60 61 62 63 64 65 TOTAL CONTRIBUTION BASED ON BUDGETED PRODUCTION 210000 441250 558125 1209375 1209375 SO PROFIT HAS INCREASED FROM 1209375 TO 1472120 RATIONALE WE HAVE RANKED THE PRODUCTS BASED ON HIGHEST CONTRIBUTION ACHIEVED PER UNITS OF LIMITING FACTOR THIS INDICATES WHERE WE GOT MORE PER UNIT PROFIT SO WE PRODUCE ACCORDINGLY. SO FIRST C, THEN B AND THEN IF ANY LABOUR HOURS LEFT FOR A 67 | MDURATION MULTIPLE GROWTH RR-NR-BOND . .. loan 0 CRDIT POLICY (KE /RATIO / CCA 1 CVP 08-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
Q.3 Answer all parts Total 20 marks] The Engineering Manager in A Company Ltd. is responsible...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Q.3 Answer all parts Total 20 marks] The Engineering Manager in A Company Ltd. is responsible...

    Q.3 Answer all parts Total 20 marks] The Engineering Manager in A Company Ltd. is responsible for maximising the profit from four product lines A, B, C and D. They have been provided with the following information; Direct materials (kgs) 80 95 70 Direct labour (hrs) Welding Assembly Finishing 4.5 9 4 4.5 9.5 4 3.5 4 8 4 Selling price per unit (E) 1500 2500 3000 1000 280 Max.sales for the period in units) 400 300 450 250 250...

  • The Engineering Manager in A Company Ltd. is responsible for maximising the profit from four product...

    The Engineering Manager in A Company Ltd. is responsible for maximising the profit from four product lines A, B, C and D. They have been provided with the following information Direct materials (kgs) 80 90 95 70 Direct labour (hrs) Welding Assembly Finishing 4.5 3.5 9.5 4 Selling price per unit (E) 1500 2500 3000 1000 Max.sales for the period in units) 400 300 280 450 250 250 250 250 Budgeted production (in units) Additional information is also provided i....

  • The Engineering Manager in ABC Ltd is responsible for maximising the profit from three product lines...

    The Engineering Manager in ABC Ltd is responsible for maximising the profit from three product lines X, Y ,Z. He/she has been provided with the following information: (b) The Engineering Manager in ABC Ltd is responsible for maximising the profit from three product lines X, Y and Z. He/she has been provided with the following information 85 120 Direct materials (E) Direct labour (hrs) Fabrication Assembly Finishing Selling price per unit (£) 100 4 2 3.75 550 210 3.5 2...

  • Q.2 As Engineering Manager in Your Company Ltd. you are responsible for maximising the profit from...

    Q.2 As Engineering Manager in Your Company Ltd. you are responsible for maximising the profit from four product lines W, X, Y and Z. You have been provided with the following information Direct materials (kg) 75 90 85 70 Direct labour (h) 3.5 Fabrication Assembly Packaging 4.5 8 3.5 4.5 9.5 4 Selling price per unit (£) 1400 2350 3000 1200 300 450 Max. sales for the period (in units) 400 280 280 Budgeted production (in units) 300 270 270...

  • SECTION A Q.2 As Engineering Manager in Your Company Ltd. you are responsible for maximising the...

    SECTION A Q.2 As Engineering Manager in Your Company Ltd. you are responsible for maximising the profit from four product lines W, X, Y and Z. You have been provided with the following information: Direct materials (kg) 75 90 85 70 Direct labour (h) Fabrication Assembly Packaging 4.5 8 3.5 4.5 9.5 4 3.5 6 Selling price per unit (S) 1400 2350 3000 1200 280 Max. sales for the period (in units) 400 300 450 Budgeted production 300 270 270...

  • Q.3 (a) Within the context of the manufacturing environment, explain the terms (i) Relevant cost (ii)...

    Q.3 (a) Within the context of the manufacturing environment, explain the terms (i) Relevant cost (ii) Opportunity cost (iii) Contribution to profit (6 marks) (b) The Engineering Manager in ABC Ltd is responsible for maximising the profit from three product lines X, Y and Z. He/she has been provided with the following information Direct materials (E) Direct labour (hrs) Fabrication Assembly Finishing Selling price per unit (E) 100 85 120 4 2 3.75 550 210 3.5 2 3.5 480 220...

  • Question 3 Time: 20 minutes Total: 12 marks Orville Company’s standard and actual costs per unit...

    Question 3 Time: 20 minutes Total: 12 marks Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 650 units were actually produced. Standard Actual Materials:      Standard: 2.5 metres at $2.7 per m. $6.75      Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour:      Standard: 1.6 hrs. at $8.40 per hr. 13.44      Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead:      Standard: 1.6 hrs....

  • (a) Phoenix Corporation has 4 departments in its factory consisting of two service departments, Human Resources...

    (a) Phoenix Corporation has 4 departments in its factory consisting of two service departments, Human Resources (HR) and Information System (IS), and two production departments, Machining and Assembly. Each of the production departments produce a single product. The current costs of each department are: $60,000 $2,400,000 $8,756,000 S12,542,000 HR IS Machining Assembly The distribution and consumption of departments' services is given as follows: Service provided to: Machining Assembly HR IS Services provided by: 40% 35% HR 25% 10% IS 30%...

  • Belfast Industries manufactures a single product, the standard cost of which is: Direct materials - 6...

    Belfast Industries manufactures a single product, the standard cost of which is: Direct materials - 6 kgs @ £4 kg Direct labour - 2 hour @ £8 hour Variable overhead - 2 hour @ £6 hr Fixed overhead - 2 hour @ £10 hr Total per unit £24.00 £16.00 £12.00 £20.00 £72.00 Other data relating to the standard cost: • • The fixed overhead rate is based on a budgeted output of 4,000 units per month The standard selling price...

  • Q.2 (Max Marks:90) Bombera Ltd operates at capacity and makes glass-topped dining tables and wooden chairs,...

    Q.2 (Max Marks:90) Bombera Ltd operates at capacity and makes glass-topped dining tables and wooden chairs, which are then typically sold as sets of four chairs with one table. However, some customers purchase replacement or extra chairs, and others buy some chairs or a table only, so the sales mix is not exactly 4:1. Bombera Ltd is planning its annual budget for the financial year 2018. Information for 2018 follows: Input prices Direct materials Wood $5.30 per board metre Glass...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT