The following information applies to questions 15 and 16: Zeda Limited manufactures three products (A, B and C), with relevant information about each product shown in the table below: Product A B C Demand (units) 250 150 50 Sales price per unit ($) 1440 1590 1584 Contribution per unit ($) 480 530 528 Labour hours per unit 12 10 8 The number of available labour hours is limited to 1700. Question 15: How many units of product A should be produced

The following information applies to questions 15 and 16: Zeda Limited manufactures three products (A, B and C), with relevant information about each product shown in the table below: Product A B C Demand (units) 250 150 50 Sales price per unit ($) 1440 1590 1584 Contribution per unit ($) 480 530 528 Labour hours per unit 12 10 8 The number of available labour hours is limited to 1700. Question 15: How many units of product A should be produced

Name: The following information applies to questions 15 and 16:Zeda Limited
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Description: The following information applies to questions 15 and 16:Zeda Limited manufactures three products (A, B and C), with relevant information about each product shown in the table below: Product ABC Demand (units) 25015050 Sales price per unit ($) 144015

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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The following information applies to questions 15 and 16: Zeda Limited manufactures three products (A, B and C), with relevant information about each product shown in the table below: Product A B C Demand (units) 250 150 50 Sales price per unit ($) 1440 1590 1584 Contribution per unit ($) 480 530 528 Labour hours per unit 12 10 8 The number of available labour hours is limited to 1700. Question 16: How many units of product B should be produced? Answer:
1) Eberling, Incorporated, manufactures and sells two products: Product Q9 and Product Z8. 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 Q9 900 8.0 7,200 Product Z8 1,000 7.0 7,000 Total direct labor-hours 14,200 The direct labor rate is $27.70 per DLH. The direct materials cost per unit is $122.40 for Product Q9 and $103.20 for Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Q9 Product Z8 Total Labor-related DLHs $ 531,080 7,200 7,000 14,200 Production orders Orders 74,880 600 700 1,300 Order size MHs 541,944 3,800 4,000 7,800 $ 1,147,904 Required: Determine the unit product cost of each product under the activity-based…
Mahaley, Incorporated, manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 09 Product Fe Total direct labor-hours Product Q9 Product Fe The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 175.60 $ 147.40 Activity Cost Pools Labor-related Expected Production 870 870 Machine setups Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Direct Labor- Hours Per Unit 8.7 6.7 Activity Measures DLHS setups MHS Total Direct Labor- Hours 7,569 5,829 13,398 $ 386,680 47,330 288, 200 $ 722,210 Expected Activity Product Q9 Product Fe 7,569 5,829 650 550 3,800 3,600 Total 13,398 1,200 7,400 The unit product cost…
A company makes two products (1 and 2). Each product requires time on two machines A and B. The specifications for each product are as follows; Product 1 Product 2 Processing time on machine A (hrs/unit) 2 2 Processing time on machine B (hrs/unit) 1 2 Material and labor cost (Sh./unit) 14 15 Selling price (Sh./unit) 16 18 Maximum possible sale (units) 130 150 The amount of time available on machine A is 360 hrs and on machine B is 260 hrs. Formulate the LP problem, which when solved, would indicate the number of product 1 and 2, which should be sold in order to maximize total…
0 Ellerie, Incorporated, manufactures and sells two products Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct labor hours (DLH) required to produce that output appear below: Activity Cost Pools Labor-related Expected Hours Per Production Unit 710 5.1 310 2.1 Product CB Product 00 Total direct labor-hours The direct labor rate is $22.20 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $114.10 $ 114.50 Machine setups Order sice Direct Labor- Product CB Product 00 The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Multiple Choice Activity Measures Total Direct Labor- Hours 3,621 651 4,272 Cost $56,055 54,890 366,008 $ 476,953 Which of the following statements concerning the unit product cost of Product GB is true? (Round your intermediate calculations…
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Accel Corp makes two products: C and D. The following data have been summarized (Click the icon to view the data.) Accel Corp desires a 28% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Accel have to charge the customer to achieve that gross profit? Round to two decimal places Begin by selecting the formula to compute the amount that the company should charge for each product Direct labor cost per unit Direct materials cost per unit Indirect manufacturing cost per unit Product cost as a percentage of sales price Target gross profit percentage Total product cost per unit Get more help. Clear all Show work Required sales price per unit Check answer
Amalia Ltd currently manufactures and sells four products. Details of these products and relevant information are given below, for one period.Product P1 P2 P3 P4Output (Unit) 240 200 160 240Machine hours 8 6 4 6 (per unit) Cost per unit: Direct material £80 £100 £60 £20Direct labour £56 £42 £28 £42 Production overheads: Indirect material £20,860Indirect labour £10,500Rent £7,200Insurance £4,200Depreciation £9,240 Production overheads are currently absorbed by using a plant-wide rate per machine hour. Required:(a) You have been asked by the financial director to calculate the cost per unit for each product. All overhead costs are absorbed on a machine hour basis (show your workings as full as possible).(b) Compare the traditional…
The following is data obtained from cheese cake production activities by PT Cheese Higen for January 2018 During January 2018, the number of cheese cakes produced was 20.000 units Requested: 1. What is the total production cost and production cost of cheese cake per unit? 2. What is the total prime cost and prime cost of cheese cake per unit? 3. What is the total conversion cost and the cheese cake conversion cost per unit?
Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) andKakaduro (K).The following data related to the products for the period.H K P TotalGH¢‘000 GH¢‘000 GH¢‘000 GH¢‘000Direct Material 150 240 200 590Direct Labour Cost 14.4 24 54 92.4OverheadsMachine settings 26Overhead Processing 64Warehouse Cost 93Energy to run machine 42Shipping 36A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company’s production process.ACTIVITY COST DRIVER ACTIVITY LEVELH K Pa. Machine setup No. of Production runs 22 34 44b. Sales order processing No. of sales received 400 600 600c. Warehouse cost No of units held in inventory 200 200 400d. Energy Machine Hours 10,000 16,000 24,000e. Shipping No. of Units shipped 1000 4000 10,000It is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products.Required:Calculate the selling price of each of the three (3) products(all calculations should be to the nearest Ghana cedi).
The MNL Manufacturing Corp has two production cycles. Choosing Production cycle A involves P54/unit of materials and choosing Production cycle B involves P60/unit of materials. However whatever production cycle, the fixed cost will amount to P40,000.00. What is true regarding the above? A. P40,000 is relevant in production cycle A B. P56/unit of materials is relevant in production cycle A. C. P56/unit and P40,000 is relevant in production cycle B D. P56/unit and P40,000 is relevant in production cycle A