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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Global GPS industries assembles its GPS systems with the following costs. Each or requires one computer system and 4 batteries. Computer systems cost $140 each, and Batteries are $2.50 each. Global is able to reliably obtain computers as needed and does not maintain them in inventory. However, batteries are stocked in inventory sufficient to produce 20% of the following month's expected production. Planned production is as follows: January February March April 24,000 systems 39,750 systems 23,850 systems 25,000 systems BB batter Compute No end/No Required: Prepare a direct material purchasing plan for January, February, and March based on the above facts.
Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Costs Reuben's Deli cost data Amounts Materials Labor Variable overhead Fixed overhead Increments $0.24 per roll 0.40 per roll 0.16 per roll 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be?
Head-First Company plans to sell 4,400 bicycle helmets at $84 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 5.50 Variable factory overhead per helmet 2.00 Total fixed factory overhead 20,000 Variable selling expense is a commission of $2.90 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year.
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