Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A B C D $17.50 $ 21.40 $ 14.40 $ 17.10 19.50 22.90 17.30 11.30 6.30 7.50 10.00 29.40 16.30 16.40 $ 72.70 $ 68.10 $ 58.10 7.00 18.40 $ 53.80 Products A B C 2.40 $ 88.20 $3.25 4,900 1.45 $ 80.60 $3.95 3,900 1.00 $ 77.40 $ 4.70 D 1.30 $ 72.10 $ 5.40 3,900 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Product B ما

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A B C D $17.50 $ 21.40 $ 14.40 $ 17.10 19.50 22.90 17.30 11.30 6.30 7.50 10.00 29.40 16.30 16.40 $ 72.70 $ 68.10 $ 58.10 7.00 18.40 $ 53.80 Products A B C 2.40 $ 88.20 $3.25 4,900 1.45 $ 80.60 $3.95 3,900 1.00 $ 77.40 $ 4.70 D 1.30 $ 72.10 $ 5.40 3,900 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Product B ما

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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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A $14.80 C B $10.70 $11.50 27.90 3.20 19.90 4.80 27.00 35.30 $ 66.50 $ 77.10 $75.80 34.10 3.10 27.10 Products A B 4.30 5.80 $76.60 $94.00 $2.70 $ 1.70 4,500 4,500 D $ 11.10 40.90 3.70 37.70 $93.40 C D 4.80 3.90 $87.90 $ 104.70 $ 3.80 $ 2.10 3,500 2,500 The grinding machines are potentially the constraint in the production facility. A total of 71,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the…
Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.40 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to:
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Blossom Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics: Selling price per unit Variable cost per unit Contribution margin per unit Machine hours per unit Standard Deluxe Superior $20 14 $6 2 $22 17 $5 2 $21 O Standard first, Deluxe second, Superior third O Deluxe first. Standard second, Superior third O Superior first, Standard second, Deluxe third O Standard first, Superior second, Deluxe third 19 $2 2 The company has only 1810 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?
Subject : Accounting
Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 26,000 2,800 40 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned 36,000 1,600 170 Estimated Cost Driver 71,600 7,000 465 9,600 2,600 255 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)
Windhoek Manufacturers produces two products, Amber and Black. The following cost estimates have been prepared using the traditional absorption costing approach. Selling price per unit Production costs per unit: Material costs Direct labour costs Manufacturing overhead cost Profit per unit Additional information. Estimates sales demand Machine hours per unit Required 1.1 1.2 Amber N$ Amber 69 27 6 12 24 9 000 0.75 Calculate the return per machine hour for each product if through put accounting approach is used. Calculate the profit for the period, using a throughput accounting approach, assuming the company priorities Black Black N$ Black 93 24 15 18 36 12 000 1.20 TIOLE.(
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 92.00 $ 66.00 $ 82.00 Variable expenses: Direct materials 27.60 18.00 12.00 Other variable expenses 27.60 31.50 45.40 Total variable expenses 55.20 49.50 57.40 Contribution margin $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials?
Dinesh Bhai
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.00 $ 4.00 $ 1.50 $5.00 $ 3.50 $ 2.50 $ 1.00 $0.50 Required: 1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 18,000 units are produced and sold, what is the total variable cost related to the units produced and sold? 4. If 22,000 units are produced and sold, what is the total variable cost related to the units produced and sold? 5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 22,000 units are produced, what is the…
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