Branson Manufacturing sells ergonomic chairs for $50.00 per unit. The variable cost per unit is $18.00. Each chair requires 5 direct labor hours and 3 machine hours to produce. Which of the following is the correct contribution margin per machine hour? a) $12.50 b) $0.08 c) None of these. d) $10.67 e) $6.25

Branson Manufacturing sells ergonomic chairs for $50.00 per unit. The variable cost per unit is $18.00. Each chair requires 5 direct labor hours and 3 machine hours to produce. Which of the following is the correct contribution margin per machine hour? a) $12.50 b) $0.08 c) None of these. d) $10.67 e) $6.25

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

See similar textbooks

Similar questions

What is the contribution margin per machine hour on this financial accounting question?
Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $42.00 $52.00 Variable costs $20.40 $24.80 Machine hours 0.60 0.80 A. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ B. Calculate total contribution margin if the additional 1,010 hours are:(1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ $
Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $45.00 $54.00 Variable costs $29.80 $30.20 Machine hours 0.40 0.70 Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour
Bridgeport Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $43.00 $19.00 0.50 Show Transcribed Text Calculate the contribution margin per machine hour for each product. Question Part Score Contribution margin per machine hour $ Basic eTextbook and Media Deluxe Deluxe $52.00 $23.30 Bridgeport should manufacture the Basic 0.70 If 1,800 additional machine hours are available, which product should Bridgeport manufacture? - Show Transcribed Text Total contribution margin $ Basic Prepare an analysis showing the total contribution margin if 1,800 additional hours are: (1) Divided equally between the products. product. $ Deluxe Total contribution margin $ (2) Allocated entirely to the product identified in part (b).
Subject: acounting
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.45 for direct materials and $1.00 for direct labor. Incremental overhead to make this part is $1.50 per unit. The company can buy the part for $4.15 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Cost difference (b) Company should:
Sheffield Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Product Basic Deluxe Selling price $45.00 $56.00 Variable costs $22.00 $27.30 Machine hours 0.50 0.70 (a) Calculate the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ GA $
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.95 for direct materials and $1.50 for direct labor. Incremental overhead to make this part is $1.70 per unit. The company can buy the part for $5.45 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: Enter your answers rounded to 2 decimal places. (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Make Buy
Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost.
Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $100 each. Direct materials cost $18 per unit, and direct labor costs $14 per unit. Manufacturing overhead is applied at a rate of 150% of direct labor cost. Nonmanufacturing costs are $36 per unit. What is the gross profit margin for the cat condos? (Round your intermediate calculations to nearest whole dollar.) Multiple Choice O O O 71.5% 47.0% 11.0% 89.0%
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,320 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Cost $ 67,080 $ 56,760 $ 30,960 $ 51,600 $ 206,400 Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,640 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,640 can be avoided and Frannie could rent out the factory space no longer in use for $20,640?
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,020 remotes is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: Cost 10 $ 65,130 $ 55,110 $ 30,060 $ 50,100 $ 200,400 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,040 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,040 can be avoided and Frannie could rent out the factory space no longer in use for $20,040? Complete this question by entering your answers in the tabs below. Required 1 Required…