Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currentlyfacing a labor shortage; only 3,300 hours are available this month. The selling prices, costs, labor requirements, and demand for thethree products are as follows:Sales price:Variable cost per unit.Direct labor hours per unitDemand (units)Large Mouth (Product A)$ 62.00$43.001.81,600Small Mouth (ProductB)$ 39.00$ 20.002,600Complete this question by entering your answers in the tabs below.Required:a. In what order should Hydroflask prioritize production of the products?b. How many of each product should be produced during the labor shortage to maximize profit?c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?Required A Required B Required CIn what order should Hanson prioritize production of the products?$ 50.00$ 40.001.71,100

The question is based on the concept of Cost Accounting. Contribution margin is the difference…

Answered: Hydroflask water bottles produces three…

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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Holton Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units Direct labor is a variable cost in this company. A $ 150.90 $65.60 $ 47.20 $9.00 $24.40 43.30 3,000 The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines. Required A Required B Required C Product B $76.30 $ 42.50 $13.50 $ 4.50 $ 3.30 4.00 1,000 Complete this question by entering your answers in the tabs below. C $ 170.90 $ 102.80 $ 30.80 $ 14.30 $ 8.80 4.00 2,000 Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? c. Up to how much should the company be willing to pay for one additional hour of…
Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: $18.00 $6.80 $2.40 $11.60 $1.90 $5.10 Direct materials. Direct labor. Variable manufacturing overhead.. Fixed manufacturing overhead. Variable selling & administrative expense. Fixed selling & administrative expense . The normal selling price of the product is $51.10 per unit. An order has beleh received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 per unit. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.50 less per unit on this order than on normal sales. There is ample idle (excess) capacity to produce the units required by the overseas customer. By how much would this special order increase…
Ashvin
Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table. Unit manufacturing costs Variable materials Variable labor Variable overhead Fixed overhead Total unit manufacturing costs Unit marketing costs Variable Fixed Total unit marketing costs Total unit costs. $ 41 66 16 51 16 61 $ 174 77 $ 251 Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $408 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself. Required: a. Market research estimates that volume could be increased to 7,000 units, which is well within production capacity limitations if the price were cut from $408 to $363 per unit. Assuming that the cost behavior patterns implied by the data in the…
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