I need answer of this question solution general accounting Glunn Company makes three products in a single facility. These products have thefollowing unit product costs:ProductDirect materialsDirect laborABC$12.80 $9.30 $4.70$14.10 $14.90 $10.00Variable manufacturing overhead $1.20 $0.90 $0.50Fixed manufacturing overhead$18.50 $17.20 $23.70Unit product cost$46.60 $42.30 $38.90Additional data concerning these products are listed below.ProductABCMixing minutes per unit3.703.403.90Selling price per unit$59.20 $60.10 $55.30Variable selling cost per unit $2.90 $2.70 $3.70Monthly demand in units 2,000 4,000 2,000The mixing machines are potentially the constraint in the production facility. A totalof 24,200 minutes are available per month on these machines. Direct labor is avariable cost in this company.How many minutes of mixing machine time would be required to satisfy the demandfor all three products?

Step 1: Define Direct LaborDirect labor refers to the expenses paid to the workforce who are…

Answered: Glunn Company makes three products in a…

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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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to manufacture the Party Line and 93,500 direct labor hours to manufacture the Holiday Line. Overhead consists of $225,000 in the machine setup cost pool and $149,960 in the packaging cost pool. The machine setup pool has 52,000 setups for the Party product and 98,000 setups for the Holiday product. The packaging cost pool has 26,000 parts in the Party product and 39,200 parts for the Holiday product. Using the traditional cost method of direct labor hours, what is the predetermined overhead rate? A. $1.50 per direct labor hour B. $2.15 per direct labor hour C. $2.30 per direct labor hour D. $3.80 per direct labor hour
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total overhead of $600,000 has traditionally been allocated by direct labor hours, with 400,000 hours for the Standard and 200.000 hours for the Slap Shot. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $450.000 of overhead, with 30,000 hours used on the Standard product and 15,000 hours used on the Slap Shot product. It was also estimated that the inspection cost pool would have $150,000 of overhead, with 25,000 hours for the Standard and 5,000 hours for the Slap Shot. What is the overhead rate per product, under traditional and under ABC costing?
rown Corporation makes four products in a single facility. These products have the following unit product costs: A B C D Direct materials $15.60 $19.50 $12.50 $15.20 direct labour $17.60 $21 $15.40 $9.40 variable manufacturing overhead $4.40 $5.60 $8.10 $5.10 fixed manufacturing overhead $27.50 $14.40 $14.50 $16.50 unit product cost $65.10 $60.50 $50.50 $46.20 Additional data concerning these products are listed below. A B C D Grinding minutes per unit 2 1.10 0.7 0.3 selling price per unit $78.70 $71.10 $67.90 $62.60 variable selling cost per unit $2.60 $3.10 $2.80 $3.50 monthly demand in units 3,000 2,000 2,000 4,000 The grinding machines are potentially the constraint in the production facility.A total of 10,500 minutes are available per month on these machines. Directlabor is a variable cost in this company.Required:I. Which product makes the LEAST profitable use of the grinding machines?II. Which product makes the MOST profitable use of the…
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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 16.10 $ 20.00 $ 13.00 $ 15.70 Direct labor 18.10 21.50 15.90 9.90 Variable manufacturing overhead 4.90 6.10 8.60 5.60 Fixed manufacturing overhead 28.00 14.90 15.00 17.00 Unit product cost $ 67.10 $ 62.50 $ 52.50 $ 48.20 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 2.25 1.35 0.95 0.55 Selling price per unit $ 81.20 $ 73.60 $ 70.40 $ 65.10 Variable selling cost per unit $ 3.10 $ 3.60 $ 3.30 $ 4.00 Monthly demand in units 3,500 2,500 2,500 4,500 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? (Round your intermediate…
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Han Solo Company makes three 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 A Products B $ 10.90 $ 15.80 $ 8.00 12.50 12.60 $9.90 2.40 1.20 1.40 11.60 7.20 7.80 $37.40 $ 36.80 $ 27.10 Additional data concerning these products are listed below. Minutes per unit Selling price per unit Variable selling cost per unit Month demands in units A Products B C 2.00 1.00 0.50 $ 55.80 $ 54.60 $ 43.10 $ 2.10 2,000 $ 1.40 1,000 $ 1.90 3,000 The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. A. Provide an optimal production plan for the Han Solo Company (i.e. how many units of each product should be produced). B. Calculate what the maximum profit would be under your optimal production plan.
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