Computation of contribution margin per pound Particulars Alpha Beta Selling price per unit $120.00 $80.00 Variable cost per unit:     Direct material $30.00 $12.00 Direct labor $20.00 $15.00 Variable manufacturing overhead $7.00 $5.00 Variable selling expenses $12.00 $8.00 Contribution margin per unit $51.00 $40.00 Raw material required per unit (In pound) (Direct materials/ $6) 5 2 Contribution margin per pound of material $10.20 $20.00 Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits?

Karan Subject: acounting

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A $ 80.00 $ 62.00 $ 81.00 Selling price Variable expenses: Direct materials 24.00 18.00 9.00 Other variable expenses Total variable expenses 24.00 25.40 43.65 48.00 43.40 52.65 Contribution margin $ 32.00 $ 18.60 $ 28.35 Contribution margin ratio 40% 30% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Complete this question by entering your answers in the tabs below.…

Standard Product Costs Deerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $4 per pound and 0.5 hour of direct labor costing, $10 per hour. The variable overhead rate is $8. per direct labor hour, and the fixed overhead rate is $12 per direct labor hour. What is the standard product cost for product M? Direct material Direct labor Variable overhead Fixed overhead Standard product cost per unit $ $

Kyrie Company produces different sizes of basketballs. The following costs were incurred during the year. Materials Labor Factory overhead P65,000 (P 15,000 is indirect) 70,000 (P 18,000 is indirect) 95,000 (including indirect materinls and indirect Iabor) · 2,600 18,600 General and administrative expenses Office salaries There were no work in process at the end of the year, 5,000 units were produced, and 90% of the units produced were sold Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs 4. Compute the total period costs 5. If the selling price is P50.00, how much is the net income

* 00 5 LL Pedregon Coporation has provided the following information: Cost per Cost per Unit $6.70 $3.80 $1.50 Period Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15,200 Sales commissions Variable administrative expense Fixed selling and administrative expense $0.75 If the selling price is $20.80 per unit, the contribution margin per unit sold is closest to: Multiple Cholce O $3.55 $5.00 O $7.35 $10.30 pe here to search |直。 F4 F5 F7 81 F11 てい %23 % 24 8.

LL 3. 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 material: 4 pounds at $19.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 32.00 Total standard variable cost per unit $84.00 The company also established the following cost formulas for its selling expenses: Variable Cost Fixed Cost per Month per Unit Sold Advertising Sales salaries and commissions, Shipping expenses, $ 240,000 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. C. Total variable manufacturing overhead for the month…

Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit $30,000 $2.00 $45,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product X: O $20,000 Product X 400 $60,000 $50,000 $25,000 $15,000 $20,000 Product Y 600 $60,000 $15,000 $10,000 $35,000 Total 1,000 $120,000 $40,000 $25,000 $55,000 $50,000 $5,000

Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):           Product A B C         Selling price $ 92.00 $ 66.00 $ 82.00 Variable expenses:       Direct materials 27.60 18.00 12.00 Other variable expenses 27.60 31.50 45.40 Total variable expenses 55.20 49.50 57.40 Contribution margin $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 25% 30%   The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month.   Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials?

ed - t 0 ances Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 58.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $88.00 26.40 26.40 52.80 $ 35.20 40% 12.00 34.40 46.40 $ 11.60 201 Contribution margin per pound of the constraining resource Required 1 C $ 80.00 12.00 44.00 56.00 $ 24.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of…