Determine the optimum mix of the scraps that should be used in producing 1000 tons of the alloys.
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An industrial recycling center uses two scrap aluminum metals, A and B, to produce a special alloy. Scrap A contains 6% aluminum, 3% silicon and 4% carbon. Scrap B has 3% aluminum, 6% silicon and 3% carbon. The costs per ton for scraps A and B are $100 and $80, respectively. The specifications of the special alloy require that (1) the aluminum content must be at least 3% and at most 6%, (2) the silicon content must lie between 3% and 5%, and (3) the carbon content must lie between 3% and 7%. Determine the optimum mix of the scraps that should be used in producing 1000 tons of the alloys.
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- Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: Brass Gold Units Planed 750 150 Material Moves 400 100 Machine Setups 500 750 Direct Labor Hours 600 1,100 The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000. A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t two decimal places. Brass 24.94 228.63 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Gold Brass Allocation Rate per Unit Gold Allocation Rate per Unit SA 35.2 177.33At John's company, two types of candles are created from the common melting and molding process: pillar candles and votive candles (eight votives per pack; one pack is one unit). The costs of the joint process total $56,700. The votive candles are sold directly after production, but the pillar candles are further etched and designed to increase their value. The quantities, costs, and values of these products as produced and sold are as follows. Production units at split-off Units sold at split-off Further processing cost Production units after further processing Units sold after further processing Sales price per unit Pillar Candles 20,000 $4 Votive Candles 10,000 9,000 $1.89 Etched, Decorated Pillar Candles $10,000 20,000 19,000 $6The Pittsburgh division of Vermont Machinery, Inc., manufactures drill bits.One of the production processes for a drill bit requires tipping, whereby carbide tips are inserted into the bit to make it stronger and more durable. This tipping process usually requires four or five operators, depending on the weekly workload. The same operators are also assigned to the stamping operation, where the size of the drill bit and the company's logo is imprinted on the bit. Vermont is considering acquiring three automatic tipping machines to replace the manual tipping and stamping operations. If the tipping process is automated, the division's engineers will have to redesign the shapes of the carbide tips to be used in the machine. The new design requires less carbide, resulting in savings on materials. The following financial data have been compiled: Project life: six years. Expected annual savings: reduced labor, $56,000; reduced material, $75,000; other benefits (reduced carpal tunnel syndrome…
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