Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $50.00 16.40 6.00 2.00 15,000 units 10,000 units 6,000 units Product B $ 60.00 11.25 6.00 2.50 Product C $90.00 24.40 6.00 4.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product D Product C

Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $50.00 16.40 6.00 2.00 15,000 units 10,000 units 6,000 units Product B $ 60.00 11.25 6.00 2.50 Product C $90.00 24.40 6.00 4.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product D Product C

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 47.00 $ 57.00 $ 87.00 Variable costs per unit 22.70 12.00 38.70 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 14,000 units Product B 9,000 units Product C 10,000 units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) Product Units Produced
Bruce Corporation makes your 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. Multiple Choice 10,800 9,800 10,500 A $ 19.90 12.20 12,000 1.60 10.80 $44.50 Products B $15.20 8.70 2.10 11.90 $37.90 C D $20.80 $ 23.20 10.50 7.40 2.00 8.80 $42.10 Products A B 1.20 0.70 $59.30 $ 51.70 $ 3.60 $ 1.50 4,000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? C 0.60 $59.50 $2.20 4,000 2.10 10.70 $43.40 D 0.60 $ 55.60 $ 3.60 2,000
The objective manufactured. A manufacturer wishes to produce two commodities x and y. The number of units of material, labor and equipment needed to produce one unit of each commodity is Shown below together with the available number of units of each of the items. available no. of units 480 y material 4 labor 4 240 equipment 4 200 profit/unit P120 P100 Find the number of units to produce in order to maximize the profit. 429
Chhom Incorporated, manufactures and cells two products Product F and Product U4 Data concerning the expected production of each product and the expected total direct labor hours (DLH required to produce that output appear below Product F9 Product 04 Total direct labor-hoursi Expected Direct Labor-Hours Total Direct Production 300 600 Activity Cost Pools Labor-related Production orders order size Per Unit 4.0 2.0 The direct labor rate is $25.90 per DLH The direct materials cost per unit is $285 for Product F9 and $244 for Product 4 The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Activity Measures DLHS orders MHS Estimated Overhead Cost Product $ 42,600 67,630 137,820 $ 248,050 Labor-Hours 1,200 1,200 2,400 1,200 400 3,300 Expected Activity Product U 1,200 GOO 3,100 Total 2,400 1,000 4,400
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Hutchison Inc. makes three products. Information related to these products are as follows: Products X Y Z Selling price per unit $ 67.90 $ 57.70 $ 43.90 Direct materials per unit $ 12.10 $ 10.30 $ 8.60 Direct labor per unit $ 14.10 $ 8.00 $ 6.80 Variable manufacturing overhead $ 2.60 $ 2.20 $ 1.80 Variable selling cost per unit $ 2.50 $ 2.20 $ 2.50 Mixing minutes per unit 2.7 3.3 4.7 Monthly demand in units 1,000 3,000 3,000 The mixing machines are potentially constraint in the production facility. A total of 25,800 minutes are available per month on these machines. Direct materials and direct labor are variable costs. Calculate (In excel with workings if…
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Using ABC, the total manufacturing costs per unit for product SuperPro is: