Explain what will happen to the break-even units if the Fixed Administration overhead cost increases by 15%.
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Explain what will happen to the break-even units if the Fixed Administration overhead cost increases by 15%.
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- VishnuThe management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required (hours/unit) Product 1 Product 2 Hours Available Department A B с 1.00 0.30 Production 0.20 Profit contribution/unit $30.00 0.35 0.20 0.50 $15.00 100 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? - Select your answer - What is the upper limit of what you…Develop an equation for total monthly production costs. Total Monthly Production costs = Fixed Costs + Variable Costs = _____________ + ($ per unit X Number of units) Predict total costs for a monthly production volume of 9,000 units.
- If answered within 30mins,it would be great!!!Calculate the original overhead absorption rate Southpeak plc manufactures two products, Alflon and Bur, in one of its factories. Product Alflon is a high-volume item, sales of which are 15,000 units each year, while Product Bur is a low-volume item, sales of which are only 8,000 units a year. Alflon products require two direct labour hours, and the Bur products require four direct labour hours per unit, which are currently used as the basis for assigning overhead cost to the products. The company’s overhead costs total $1,070,450 each year. Unit selling prices, costs for materials and labour in the factory of the two products are as follows: Product Alflon ($) Product Bur ($) Selling Price 89 115 Direct Labour (at $10 per hour) 20 40 Direct Materials 15 15Vala
- Deep South Glass Company is exploring different prediction models that can be used to forecast machine maintenance costs. One independent variable under consideration is machine hours. Following are matching observations on machine maintenance costs and machine hours for the past six months: Month Machine hours Machine Maintenance costs 1 300 $20,000 400 $24,000 3 240 $17,000 4 370 $22,000 5 200 $13,000 6 225 $14,000 In a high-low model, which months' observations would be used to compute the model's parameters? 4 and 5 1 and 6 2 and 6 O 2 and 5Are the fixed costs as well as the 'other variable costs" included in the calculations of total overhead?2- Please solve these sub-parts of this question on urgent basis. Thanks
- Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Helix Company is approached by a new customer to provide 1,800 units of its product at a special price of $9 per unit. The normal selling price of the product is $11 per unit. Helix is operating at 80% of its capacity of 11,500 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative costs because of this order. QS 23-2 (Algo) Special offer LO P7 a. Special selling price of $9.00 per unit b. Direct materials of $2.00 per unit c. Direct labor of $3.00 per unit d. Variable overhead of $2.50 per unit e. Fixed overhead of $.75 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? Sales Variable costs SPECIAL OFFER ANALYSIS Direct materials Direct labor Variable overhead…Explain points the estimator must take into consideration when preparing for an upcoming project If the daily production rate for a crew that works in activity is 200 units/day and the total crew cost per day is 150 $. The material unit cost is 3 $. - Calculate the time and cost it takes the crew to finish 2100 units -Calculate the total unit cost.TASK B. Read the problem and provide what is being required. 1. Golf Corporation estimates that its production for the coming year will be 25,000 units, which is 90% of normal capacity, with the following units costs: Materials P50 Direct labor 90 Direct labor is paid at the rate of P25 per hour. The machine should be run 20 minutes to produce one unit. Total estimated overhead is expected to consist of P900,000 for variable overhead and P900,000 for fixed overhead. a. What is the predetermined overhead rate base on units of production using the expected actual capacity activity level? b. What is the predetermined overhead rate base on material cost? C. What is the predetermined overhead rate base on direct labor cost? d. What is the predetermined overhead rate base on direct labor hours? e. What is the predetermined overhead rate based on machine hours? What is the predetermined overhead rate base on units of production using the normal capacity level? g. What is the predetermined…