Blue Company makes three products in a single facility. Data concerning these products follow: Products A B Selling price per unit $67.90 $57.70 $43.90 Direct materials $12.10 $10.30 $8.60 Direct labour $14.10 $8.00 $6.80 Variable manufacturing overhead Variable selling cost per unit $2.60 $2.20 $1.80 $2.50 $2.20 $2.50 Mixing minutes per unit 2.70 3.30 4.70 Direct materials in KG per unit 7.52 13.25 4.80 Monthly demand in units 1,000 3,000 3,000 The mixing machines and direct materials used are potentially constraints in the production facility. A total of 25,000 minutes are available per month on these machines. Direct labour is a variable cost in this company. Total direct materials available are 40,000 kg. Required: 1.) In what order should Blue Company produce its products if mixing minutes per unit are the only production constraint? 2) in what order should Blue Company produce its products if direct materials used are the only production constraint?

Blue Company makes three products in a single facility. Data concerning these products follow: Products A B Selling price per unit $67.90 $57.70 $43.90 Direct materials $12.10 $10.30 $8.60 Direct labour $14.10 $8.00 $6.80 Variable manufacturing overhead Variable selling cost per unit $2.60 $2.20 $1.80 $2.50 $2.20 $2.50 Mixing minutes per unit 2.70 3.30 4.70 Direct materials in KG per unit 7.52 13.25 4.80 Monthly demand in units 1,000 3,000 3,000 The mixing machines and direct materials used are potentially constraints in the production facility. A total of 25,000 minutes are available per month on these machines. Direct labour is a variable cost in this company. Total direct materials available are 40,000 kg. Required: 1.) In what order should Blue Company produce its products if mixing minutes per unit are the only production constraint? 2) in what order should Blue Company produce its products if direct materials used are the only production constraint?

Name: Blue Company makes three products in a single facility. Data concerni
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Description: Blue Company makes three products in a single facility. Data concerning these products follow:ProductsSelling price per unit$67.90$57.70$43.90Direct materials$12.10$10.30$8.60Direct labour$14.10$8.00$6.80Variable manufacturing overhead$2.60$2.20$1.8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: accounting
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