The company has only 1790 machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
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- W Incorporation produces three products, Product P, Product Q and Product R. Product P requires 6 Labor hours per unit to be completed, Product B requires 8 labor hours per unit to be completed and Product C requires 4 labor hours per unit to be completed. The company's labor hours are limited to 60,000 hours. The information related to the three products are given below: Particulars Product P Product Q Product R Selling price per unit Variable cost per unit Demand (units) $600 $800 $200 $350 $600 $150 5500 4800 2000 Calculate the maximum number of units that can be produced for Product P provided the company applies the policy of producing as per optimal utilization of the constrained resource. a. 4200 units b. 5500 units c. 3600 units d. 2140 unitsCube Industries sells three products-P, Q and R. Here are data regarding these three products: Product Q Annual customer demand, in units Selling price, per unil Variable costs, per unit Direct labor hours to produce one unit O $17 per hour O $18 per hour O $19 per hour O $21 per hour Product P O None of the above 525 units $660 $280 20 hours 450 units $940 $515 25 hours Product R 600 units Cube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing to pay per direct labor hour to acquire additional capacity? $370 $160 10 hoursRichburg Corporation makes three products (X, Y, & Z) with the following characteristics: Selling price per unit Variable cost per unit Machine hours per unit O 2,000 units of X, 500 units of Y, and 200 units of Z O 0 units of X, 0 units of Y, and 200 units of Z O units of X, 500 units of Y, and 0 units of Z Products X Y S 10 S 15 S S6 S 10 S 2 4 The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce? O 1,000 units of X, 0 units of Y, and O units of Z Z 20 10 10
- Hutchison Inc. makes three products. Information related to these products are as follows: Products X Y Z Selling price per unit $ 67.90 $ 57.70 $ 43.90 Direct materials per unit $ 12.10 $ 10.30 $ 8.60 Direct labor per unit $ 14.10 $ 8.00 $ 6.80 Variable manufacturing overhead $ 2.60 $ 2.20 $ 1.80 Variable selling cost per unit $ 2.50 $ 2.20 $ 2.50 Mixing minutes per unit 2.7 3.3 4.7 Monthly demand in units 1,000 3,000 3,000 The mixing machines are potentially constraint in the production facility. A total of 25,800 minutes are available per month on these machines. Direct materials and direct labor are variable costs. Calculate (In excel with workings if…Waterberry Company operates a single - product entity. Data relating to the produ follows.Time left 1:07:22it ofAnnual volume 64 000 units Selling price per unit $50Variable manufacturing cost per unit14Annual fixed manufacturing costs 640 000Variable marketing and distribution costs per unit6Annual fixed non - manufacturing costs 320 000What is the total variable cost per unit of the above product?a.bC.d.$6$14520$13Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
- KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…Corvine Corporation makes two types of motors for use in various products. Operating data and unit cost information for its products are presented next. Product A Producet B Annual unit capacity 10,000 20,000 Annual unit demand 10,000 20.000 Selling price Variable manufacturing cost Fixed manufacturing cost Variable selling and administrative 10 Fixed selling and administrative 5 Fixed other administrative S100 $80 53 45 10 10 11 Unit operating profit $20 $10 Machine hours per unit 2.0 1.5 Corvine has 40,000 productive hours available. Required Calculate the relevant contribution margin, per machine hour for each product, to be utilized in making a decision on product priorities for the coming year.Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 5 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $37.10 per DLH. The direct materials cost per unit is $203.60 for Product W2 and $140.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 218,576 2,000 2,000 4,000 Production orders orders 18,538 400 380 780 Order size MHs 202,886 3,880 3,680 7,560 $ 440,000 Which of the…
- 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 $18Hitec industries produces three products with the following costs and selling prices: Product Y Selling price per unit P40 P30 P35 Variable costs per unit 24 18 20 Contribution margin per unit 18 14 15 Direct labor hours per unit 3 Machine hours per unit 7 4 If Hitec has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order? Y. Z, X X, Y, Z X, Z, Y Z, X, Y 2.Blossom Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $11 $14 $16 Variable costs and expenses $6 $12 $13 Machine hours to produce 2 1 2 (a) Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places
