2) Consider the data provided below for three products Product Selling Unit direct Unit Unit Unit...
A company produces two products on two machines. •A unit of Product 1 requires 2 hrs on machine 1 and 1 hr on machine 2. •For Product 2, a unit requires 1 hr on machine 1 and 3 hrs on machine 2. •The profitper unit of Products 1 and 2 are $30 and $20, respectively. •The total weeklyprocessing time available for each machine is 80hrs. Question 1: Let x be the number of units produced for Product 1 and y...
Product A Product B Selling Price $25 $20.40 Direct Materials($2/lb) 4.00 6.00 Direct Labor($6/hr) 6.00 3.00 Variable Overhead 2.00 .80 Fixed Overhead 1.60 1.60 Variable selling expense 1.00 1.00 Fixed Selling/administrative Expense 2.40 17.00 2.40 14.80 Net Income $8.00 $5.60 The company has a maximum 1,000 labor hours available for the upcoming period. This represents the only internal constraint on capacity. The company keeps no finished goods inventory and currently estimates a maximum demand of 350 units of Product A...
Product G $ 50 Product B $ 80 10 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month S 40 $ 32 0.4 hours 600 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G Product B 120 72 Selling price per unit Variable costs per unit $ 90 30 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 1.0 hours 600 units 200 units The company presently operates the machine for a single eight-hour shift for 22...
Ala Carte Bhd makes three products in a single facility. Data concerning these products follow Product Direct materials RM74.90 RM90.80 RM26.40 RM29.10 RM2.20 RM2.20 RM3.80 RM2.50 3.20 Direct Labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units RM71 RM15.20 RM1.60 2.90 2.70 1.000 4,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 24,500 minutes are available per month on these machines. Direct labor is a...
The three stations work cell illustrated in the figure below has a product that must go through one of the two machines at station 1 ( they are parallel) before proceeding to station 2 Capacity:30 units/hrs Station 1 Machine A Station 1 Machine B Capacity:30 units / hrs Station 2 Capacity 12 units/hrs Station 3 Capacity 4 units/hrs A) The bottleneck time of the system is .......minutes per unit ( enter your response as whole number) B) Station 1 or...
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Selling price Direct labor costs Other variable costs Product DE F $207.0 $324.4 $247.4 36.4 107.8 43.4 103 78 142 The company has 2,500 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. Determine the number of direct labor hours per unit. (Round...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 52.00 $ 80.00 Variable expenses: Direct materials 27.00 15.00 12.00 Other variable expenses 27.00 24.00 40.00 Total variable expenses 54.00 39.00 52.00 Contribution margin $ 36.00 $ 13.00 $ 28.00 Contribution margin ratio 40 % 25 % 35 % The company estimates that it can sell 800 units of each product per month. The same...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit Direct Labor per unit,...
Glocker Company makes three products in a single facility. These products have the following unit product costs: 3 Product B 5 Direct Materials $ 10.90 $ 15.80 $ 12.60 6 Direct Labor 18.50 12.60 9 .75 7 Variable Manufacturing Overhead 2.40 1.20 1.80 8 Fixed Manufacturing Overhead 11.607.209.60 9 Unit product cost $ 43.40 $ 36.80 $ 33.75 10 11 12 Additional information about the products: Product 14 15 Mixing minutes per unit 2.00 0.50 1.00 16 Selling price per...