Eagle Stationery & Supplies Company sells jumbo highlighters at $160 per highlighter. The costs associated with each highlighter are as follows: Direct materials $65 Direct labour $42 Variable factory overhead $17 Total Fixed Costs is $152,280 What is the contribution margin ratio? Question 18Answer a. 22.5% b. 29.0% c. 77.5% d. 40.6%
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- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: Direct materials $50 8. Direct manufacturing labor Variable manufacturing overhead 10 Fixed manufacturing overhead 23 15 Sales commissions (2% of sales) Administrative salaries 9 Total $105 What are the variable costs per unit associated with Product ORD203? Select one: a. $82 b. $60 C. $73 d. $105 22°C
- The Wes Company manufactures several different products. Unit costs associated with Product AGT210 are as follows: Direct materials $ 40 Direct manufacturing labour 8. Variable manufacturing overhead 12 Fixed manufacturing overhead 23 Sales commissions (2% of sales) 6. Administrative salaries Total $98 What are the inventoriable costs per unit associated with Product AGT210? Select one: C a. 48. O b. $66. $60 $832 kipped Tirri Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Multiple Choice O $13.35 Help If the selling price is $28.20 per unit, the contribution margin per unit sold is closest to: $8.15 $16.70 $10.05 Save & Exit Submit Cost per Uni $ 7.55 $ 3.95 $ 1.60 $ 1.10 $ 0.65Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Variable marketing and administrative $ 20 25 24 17 6 Vegas produced and sold 10,000 units. If the product sells for $100, what is the contribution margin?
- The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18Q-1: The Hum co. has decided to distribute the costs of service departments by the algebraic method. The producing department A and B the service departments X and Y and the monthly data are: Actual factory overhead Cost before distribution Rs Service provided by Y 50% 84,000 58,000 20,000 17,600 A 40% 50 30 20 Y. 10 Required: Total factory overhead of producing department after distribution of service department cost. Department A predetermined overhead rate is based on direct labor hours. The total rate is Rs3, 40% of which fixed. Fixed overhead budgeted is Rs 46,000. The Actual direct labor hours for the month were 34,000. Compute spending and idle capacity variances for department A.Question No. 1-2 The estimated costs of producing 6,000 units of a component are: Per Unit Direct Material $10 Direct Labor 8 Applied Variable Factory Overhead 9 Applied Fixed Factory Overhead $1.5 per direct labor dollar The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. 12 Required: a. Should the component be purchased from the market? b. Being a production manager, provide your iogicai opinion on choosing between purchasing the component from market or producing in-house
- Spartans Inc. has the following Standard Cost Card: per unit per year Price $21.00 Direct Materials $6.00 Direct Labor $1.80 Var. MOH $0.80 Fixed MOH $36,000 Selling $2.00 Administrative $60,000 1. What is the contribution margin per unit? $8.60, $2.99, $7.59, $10.60, or $4.99 2. What is the contribution margin ratio? 0.3672, 0.6328, 0.7800, 0.2200, or 0.4415 3. Based on your answer from (b), how much of every $1.00 of sales represents variable costs? 4. If direct labor costs increase by $1.00, how will that affect the contribution margin?R company can produce 1,000 of finished goods units through following costs: Direct material Direct labor Variable overhead Fixed overhead The company can buy these 1,000 units from outside for $170,000. Fixed cost of $19,250 is avoidable if units are purchased from outside. If the company will produce the goods, then what will be the cost savings? Answer * O O A B с $82,000 $33,500 $27,000 $19,250 Droduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,200 Direct labor 31 Selling and admin. exp. 70,300 Factory overhead 23 Selling and admin. exp. 22 Total variable cost per unit $166 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…