Bottleneck Profit Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours. Determine the unit contribution margin per production bottleneck hour for each product, assuming the furnace is a bottleneck constraint. Product K $fill in the blank 1 Product L $fill in the blank 2 is the most profitable in using bottleneck resources.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Bottleneck Profit
Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours.
Determine the unit contribution margin per production bottleneck hour for each product, assuming the furnace is a bottleneck constraint.
| Product K | $fill in the blank 1 |
| Product L | $fill in the blank 2 |
is the most profitable in using bottleneck resources.
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