***NEED HELP UNDERSTANDING HOW TO GET THE LABOR AND OVERHEADEugene’s Wildlife manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the following flowchart. Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible. Eugene’s Wildlife can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions.a) Using the traditional method, which bases decisions solely on a product’s contribution to profits, what is the optimal product mix and what is the overall profitability? **Product Flow Diagram Explanation**This diagram illustrates the production processes for two products, "Deluxe" and "Super Duper," detailing the steps involved and specific resource requirements.### Deluxe Product Process:1. **Raw Materials ($9):** - Initial input costing $9.2. **Step 1 at Workstation Z (30 min):** - The first production step takes place at workstation Z, requiring 30 minutes.3. **Step 2 at Workstation Y (15 min):** - The process continues at workstation Y, taking 15 minutes.4. **Finish with Step 3 at Workstation X (15 min):** - Final step at workstation X, lasting 15 minutes.5. **Purchased Part ($6):** - Incorporation of a purchased part costing $6.6. **Product Details:** - Product Name: Deluxe - Price: $81 per unit - Demand: 50 units per week### Super Duper Product Process:1. **Raw Materials ($4):** - Initial input costing $4.2. **Step 1 at Workstation X (30 min):** - The first production step takes place at workstation X, requiring 30 minutes.3. **Step 2 at Workstation Z (10 min):** - The process continues at workstation Z, taking 10 minutes.4. **Finish with Step 3 at Workstation Y (20 min):** - Final step at workstation Y, lasting 20 minutes.5. **Purchased Part ($6):** - Incorporation of a purchased part costing $6.6. **Product Details:** - Product Name: Super Duper - Price: $80 per unit - Demand: 60 units per week### Summary:The diagram provides a clear comparison of the production processes for the two products, highlighting the differences in workstations and time allocation required for each step. The purchase cost of parts and the raw material input cost are also specified, along with the pricing and demand details for each product.

Find the bottleneck by comparing the workload and capacity of each resource. Demand/ week 50 60…

Answered: limit of its weekly demand and there…

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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***NEED HELP UNDERSTANDING HOW TO GET THE LABOR AND OVERHEAD

Eugene’s Wildlife manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the following flowchart. Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible. Eugene’s Wildlife can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions.

a) Using the traditional method, which bases decisions solely on a product’s contribution to profits, what is the optimal product mix and what is the overall profitability?