A manufacturer has found that m employees produce q units daily of a product according to...
1. A manufacturer has found that when n employees are working, the number of units of product produced per day is q = 107 m2 + 3600 - 600. The demand equation for the product is 90+ p- 7200 = 0, where p is the selling price in dollars when the demand for the product is q units per day. (a) Determine the manufacturers marginal revenue MR when n=80, i.e., the relative rate of change of revenue with respect to...
A firm applies a production technology to produce units of output (q) according to the production function q = 20 x L^.5 x K^.5 , where L is a variable input and K is a fixed input. Assume K = 100 in the short run. solve for the short-run average product of labor (AP L) and the marginal product of labor (MP L) functions. If L = 100, what are the numerical values of AP L and MP L?
Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The...
Concord Manufacturing Company, a small manufacturer of appliance parts, has just completed its first year of operations. The company's controller, Kenneth Clark has been reviewing the results for the year and is concerned about the application of factory overhead. Trainor is using the following information to assess operations. • Concord uses several machines with a combined cost of $2,250,000 and no residual value. Each machine has an output of 5 units of product per hour and a useful life of...
Concord Manufacturing Company, a small manufacturer of appliance parts, has just completed its first year of operations. The company's controller, Kenneth Clark has been reviewing the results for the year and is concerned about the application of factory overhead. Trainor is using the following information to assess operations. • Concord uses several machines with a combined cost of $2,250,000 and no residual value. Each machine has an output of 5 units of product per hour and a useful life of...
11. Chinene Investments produces only one type of product has 40 workers. Each one of them produces 20 units per month. The demand varies during the semester according to the following table Month 1 2 3 45 6 Demand (units) 700 600 500 800900 800 In order to increase/decrease production depending on the demand, the firm can offer some (paid) extra working time (each worker can produce at most 6 additional units per month at unit cost of 5 euros),...
Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
D4 Exćel Tutorial As you learned in the previous chapters, Current Designs has two main product lines- composite kayaks, which are handmade and very labor-intensive, and rotomolded kayaks, which require less labor but employ more expensive equipment. Current Design's controller, Diane Buswell, is now evaluating several different methods of assigning overhead to these products. It is important to ensure that costs are appropriately assigned to the company's products. At the same time, the system that is used must not be...
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Help Save & Exit Check m Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods $ 61,500 $ 32,400 $ 42,900 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $13.75 per direct labor-hour was based on a cost formula that estimated $550,000 of...
8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. debit to Sales b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Sales 10. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30%...