Required: 1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize producti by rank, i.e., ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table Blossom should produce to maximize its profit. 3. Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 4. If Blossom has only 248,000 machine hours available, calculate the number of units of each table Blossom should produce to maximize its profit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Blossom, Incorporated, is a small company that manufactures three versions of patio tables. Unit information for its products follow
Sales price
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Required number of labor hours.
Required number of machine hours.
Table A
$ 56
Table B
Table C
$ 60
$ 74
12
13
14
3
5
9
5
5
5
9
9
9
0.50
0.50
1.00
4.00
2.50
2.00
Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows
Table A
Table B
Table C
Required:
60,000 units
20,000 units
20,000 units
1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize producti
by rank, i.e., ordering the products from 1 to 3.
2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table Blossom should produce to
maximize its profit.
3. Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should
prioritize production by rank, i.e., ordering the products from 1 to 3.
4. If Blossom has only 248,000 machine hours available, calculate the number of units of each table Blossom should produce to
maximize its profit.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 31 Required 4
Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize
production by rank, i.e., ordering the products from 1 to 3.
Product
Ranking
Table A
Table B
Table C
Transcribed Image Text:Blossom, Incorporated, is a small company that manufactures three versions of patio tables. Unit information for its products follow Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours. Required number of machine hours. Table A $ 56 Table B Table C $ 60 $ 74 12 13 14 3 5 9 5 5 5 9 9 9 0.50 0.50 1.00 4.00 2.50 2.00 Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows Table A Table B Table C Required: 60,000 units 20,000 units 20,000 units 1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize producti by rank, i.e., ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table Blossom should produce to maximize its profit. 3. Suppose the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 4. If Blossom has only 248,000 machine hours available, calculate the number of units of each table Blossom should produce to maximize its profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Required 4 Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. Product Ranking Table A Table B Table C
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