Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men'sfashions. The firm expects the total demand to be 23,000 suits. Management estimates the required input resources using thedifferent manufacturing approaches are:Direct Materials(yards)243,000183,000Direct Labor (hours)103,000123,000MFLIThe cost of direct materials is $14 per yard; the cost of direct labor is $30 per hour.Required:1. Compute the partial operational productivity ratios for each of the production approaches.2. Calculate the partial financial productivity ratios for each of the production approaches.3. Compute the total productivity ratios for each of the production approaches.(For all requirements, round your answers to 4 decimal places.)1.Operational partial productivityMFLIDirect materialsDirect labor2.Financial partial productivityDirect materialsDirect labor3. Total productivity

Total Productivity Ratio: The productivity ratio is a measurable statistic that quantifies…

Answered: Katrina Design has decided to…

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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Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the total costs and Material 3 is 5,000. Other information: Material 1 Material 2 Material 3 Labor hours / unit 0.15 0.20 0.25 1. How many units of each component should be outsourced and insourced? 2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced? FILL IN THE BLANKS FOR THE FINAL ANSWER Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0…
Sylvan Creations designs, manufactures, and sells modern wood sculptures. Sandra Johnson is an artist for the company. Johnson has spent much of the past month working on the design of an intricate abstract piece. Jim Chase, product development manager, likes the design. However, he wants to make sure that the sculpture can be priced competitively. Ellen Cooper, Sylvan’s cost accountant, presents Chase with the following cost data for the expected production of 75 sculptures: Design cost $10,000 Direct materials 80,000 Direct manufacturing labor 27,500 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 42,500 Fixed marketing costs 17,500 Q. Chase thinks that Sylvan Creations can successfully market each piece for $3,000. To earn the required return on capital, the company’s target operating income per unit is 20% of target price. Calculate the target full cost per unit of producing the 75 sculptures. Does the cost estimate Cooper developed meet Sylvan’s requirements?…
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