Need complete working of step Question No. 7: Production under Constrained ResourcesGlover Company makes three products in a single facility. These products have the following unit productDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadUnit product costAdditional data concerning these products are listed below.Mixing minutes per unitSelling price per unitVariable selling cost per unitMonthly demand in unitsAProduct$$B$ 35.10 $ 51.60 $ 58.0025.1015.9022.502.301.701.607.808.40$ 72.10 $ 86.20 $AProductBC81.00 $2.90 $31000.30 0.20103.40 $ 96.903.40 S3.2044002400The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes aravailable per month on these machines. Direct labor is a variable cost in this company.Required:83.90CCa. How many minutes of mixing machine time be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?ABOptimal productionUp to how much should the company be willing to pay for one additional hour of mixing machinetime if the company has made the best use of the existing mixing machine capacity?

a. Total number of minutes of mixing time be required to satisfy demand for all three products…

Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. C. A $ 35.10 $ 22.50 2.30 12.20 C 51.60 $ 58.00 25.10 15.90 1.70 1.60 7.80 8.40 $72.10 $ 86.20 $ 83.90 Product A $ B Product B Mixing minutes per unit 1.30 0.80 0.20 Selling price per unit $81.00 $ 103.40 $ 96.90 Variable selling cost per unit 2.90 $ 3.40 $ 3.20 Monthly demand in units 3100 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B C C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Question No. 7: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. C. A $ 35.10 $ 22.50 2.30 12.20 C 51.60 $ 58.00 25.10 15.90 1.70 1.60 7.80 8.40 $72.10 $ 86.20 $ 83.90 Product A $ B Product B Mixing minutes per unit 1.30 0.80 0.20 Selling price per unit $81.00 $ 103.40 $ 96.90 Variable selling cost per unit 2.90 $ 3.40 $ 3.20 Monthly demand in units 3100 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B C C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.
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).
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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?
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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Multiple Choice A $ 13.00 18.10 3.00 25.20 $6.80 B C D $8.90 $9.70 $9.30 26.10 32.30 39.10 1.40. 1.90 33.50 25.30 35.90 $59.30 $ 69.90 $ 68.60 $ 86.20 Products A 2.50 $ 74.80 $0.90 2,700 B Grinding minutes per unit Selling price per unit 3.00 $ 92.20 $ 0.10 Variable selling cost per unit Monthly demand in units 2,700 The grinding machines are potentially the constraint in the production facility. A total of 23,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of he existing grinding machine capacity? ote: Round your…