Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3 Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows: April demand Contribution margin Required machine hours. Product A 3,000 units $ 600 per unit 3 per unit Product mix for April production Required: Determine how many units of each product Lakeside should produce to maximize contribution margin in April. Product A Product B 2,000 units $ 500 per unit 2 per unit units Product B units

Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3 Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows: April demand Contribution margin Required machine hours. Product A 3,000 units $ 600 per unit 3 per unit Product mix for April production Required: Determine how many units of each product Lakeside should produce to maximize contribution margin in April. Product A Product B 2,000 units $ 500 per unit 2 per unit units Product B units

Name: Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3Lakeside
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Description: Mini-Exercise 16-5 (Static) The Product Mix Decision LO 2, 3Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hoursper month. Lakeside estimates April demand for each product

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
A unit has total of 5,400 machine hours available for a month The following information is given: Product A Product B Product C Contribution margin per unit P P 15.00 18.00 7.50 Machine hours per unit 3 2 1 If market demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits? a. Product 3 first, product 2 second, and product 1 third. b. Product 2 first, product 3 second, and product 1 third. c. Product 3 first, product 1 second, and product 2 third. d. Product 1 first, product 2 second, and product 3 third.
Comprehensive ProblemPart B: Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment…
Brick lane Co. produces two products: Camden and Chelsea. Direct Materials Direct labor (2 per hour) Variable overhead Rectangula Camden 2 8 1 11 Chelsea 3 2 1 6 The sale price per unit is $ 13 per Camden and 11 $ per Chelsea. In August 2022, the available direct labor is limited to 7,000 hours. Salas demand in July is expected to be 4,000 for Camden and 6,000 united for Chelsea. Required: Determine the profit product mix for Brick lance Co. assuming that Monthly fixed costs are $15,000 and that opening inventory of finished goods and work in progress are nil.
Brick lane Co. produces two products: Camden and Chelsea. Camden Chelsea Direct Materials 2 3 Direct labor (2 per hour) 8 2 Variable overhead 1 1 11 6 The sale price per unit is $ 13 per Camden and 11 $ per Chelsea. In August 2022, the available direct labor is limited to 7,000 hours. Salas demand in July is expected to be 4,000 for Camden and 6,000 united for Chelsea. Required: Determine the profit product mix for Brick lance Co. assuming that Monthly fixed costs are $15,000 and that opening inventory of finished goods and work in progress are nil.
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 4. What is the materials quantity variance for March? (Indicate the…
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 12. What variable manufacturing overhead cost would be included in the…
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 6. If Preble had purchased 185,000 pounds of materials at $6.50 per…
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 15. What is the variable overhead efficiency variance for March? (Round…
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 8. What direct labor cost would be included in the company’s flexible…
Required information Skip to question [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8 per pound $ 40 Direct labor: 3 hours at $15 per hour 45 Variable overhead: 3 hours at $9 per hour 27 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production. Direct laborers worked 70,000 hours at a rate of $16 per hour. Total variable manufacturing overhead for the month was $655,200. 9. What is the labor rate variance for March? (Indicate the effect of…
Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $144,000 Number of setups 120 Ordering materials 14,400 Number of orders 900 Machining 103,950 Machine hours 9,450 Receiving 22,770 Receiving hours 1,035 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 5,600 11,200 Number of setups 80 40 Number of orders 300 600 Machine hours 5,400 4,050 Receiving hours 345 690 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned Model X $fill in the blank 1 Model Y $fill in the blank 2 2. Determine the total overhead assigned to each model using…