Kingston Manufacturing has 28,100 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) 2 4 Maximum demand (units) 6,550 8,550 Contribution margin per unit 8 $ 14 Contribution margin per labor hour $ 4.00 $ 3.50 If Kingston follows proper managerial accounting practices, what production schedules should the company set?

Kingston Manufacturing has 28,100 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) 2 4 Maximum demand (units) 6,550 8,550 Contribution margin per unit 8 $ 14 Contribution margin per labor hour $ 4.00 $ 3.50 If Kingston follows proper managerial accounting practices, what production schedules should the company set?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	Product X	Product Y
Required labor time per unit (hours)	2	4
Maximum demand (units)	6,550	8,550
Contribution margin per unit	8	$ 14
Contribution margin per labor hour	$ 4.00	$ 3.50

Similar questions

Dengar
Corporate data is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost Cost per per Period Unit $6.30 $3.20 $1.35 $1.50 $0.50 $15,000 $ 3,500 f the selling price is $22 per unit, the contribution margin per unit sold is closest to:
Units produced Machine-hours Direct labor-hours Revenues Direct materials costs Direct labor costs Manufacturing overhead Operating Profit Revenue-related overhead Direct cost-related overhead Total overhead Silver 2,000 590 600 $ 583,600 310,000 9,600 Total profit (loss) Unit profit (loss) Silver The team has been discussing two issues. First, there is disagreement about how best to allocate the manufacturing overhead among the products. The current cost accounting system allocates manufacturing overhead to products based on expected unit sales. (Because Ferry carries no inventory, unit sales are equal to units produced.) Second, there is a concern about a "softening" in the demand for these systems and the managers at Ferry want to get a better understanding of possible financial implications if demand should be weaker than expected. Gold 1,500 2,100 1,200 $ 793,050 533, 250 28,800 The finance team decides that a two-stage system might improve the information available for…
Using this information from Planters, Inc., what is the cost per unit under variable costing? Round to the nearest penny, two decimal places. Planters, Inc data Cost Amount Production 10,452 units Direct materials $239 Direct labor 257 Variable manufacturing overhead 108 Fixed manufacturing overhead 1,092,801
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information: Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Month Machine-Hours Total Cost January 1,800 $21,500 February 2,900 $23,200 March 1,000 $19,750 April 2,400 $21,000 May 3,400 $23,900
Ocean Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 Fixed marketing expenses totaled $12,000 and fixed administrative expenses totaled $32,000. The price per calendar is $15. What is the contribution margin per unit?
Want the Correct answer
Vala
Skolnick Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.00 Direct labor $ 4.20 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 126,000 Sales commissions $ 1.50 Variable administrative expense $ 0.35 Fixed selling and administrative expense $ 41,400 Required: a. If 9,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.) b. If 9,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
narubhai
Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product Q5 Product JØ Total Labor-related DLHS $191,748 70,536 295,592 Production orders 3,000 2,800 5,800 orders 300 500 800 Order size MHs 4,300 4,500 8,800 $557,876 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $36.23 per MH $68.48 per MH $96.19 per MH
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 units