Task 9. The company produces product A. | Calculate the next month's costs, taking into account that the fixed overhead costs are planned in the amount of 1785 euros and the planned production quantity is 105 units. The table shows the product cost norms: Indicators/costs 1. Consumption of materials 2. Price per 1kg of material 3. Productivity of production workers 4. Hourly wage rate for production workers 5. Variable overheads Norms 0,6 kg. 24,00 € 1,6 units/h 7,00 € 11,00 €

Task 9. The company produces product A. | Calculate the next month's costs, taking into account that the fixed overhead costs are planned in the amount of 1785 euros and the planned production quantity is 105 units. The table shows the product cost norms: Indicators/costs 1. Consumption of materials 2. Price per 1kg of material 3. Productivity of production workers 4. Hourly wage rate for production workers 5. Variable overheads Norms 0,6 kg. 24,00 € 1,6 units/h 7,00 € 11,00 €

Name: Task 9.The company produces product A.| Calculate the next month's co
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Description: Task 9.The company produces product A.| Calculate the next month's costs, taking intoaccount that the fixedoverhead costs are planned in the amount of 1785euros and the planned production quantity is 105units.The table shows the product cost norms:I

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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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).
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