Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increase to $45 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. Special Order: Contribution margin per unit Number of units Total contribution margin Regular production: Contribution margin per unit Number of units Total contribution margin Total contribution margin for both: Additional direct-labor costs Additional variable overhead Total contribution margin for both (with additional costs) Cook Baker Total $ 7 $ 50,000 15 30,000 $ 350,000 $ 450,000 $ 800,000 $ 12 $ 25 230,000 120,000 $ 2,760,000 $ 3,000,000 $ 5,760,000 $ 6,560,000 $ 6,560,000 Oakland Precision Products (OPP) manufactures and sells a variety of scales for the kitchen and office. OPP sells primarily to kitchenware stores, discount stores, and so on. Two of the scales it produces for kitchen use are the Cook and Baker. The Cook is a basic food scale. The Baker has a greater capacity and special features that facilitate adjusting baking recipes for more or fewer people. The following information is available: Costs per unit Direct materials Direct labor Variable overhead Fixed overhead Total cost per unit Price Units produced and sold 2.40 15.00 Cook $ 1.60 Baker $ 14.40 0.80 3.20 0.60 8.00 $ 11.00 $ 35.00 $ 15.00 230,000 $ 45.00 120,000 The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours.

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Req B1
Req B2
Req C1
Req C2
Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime
production increase to $45 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal
production. Complete the table below to determine the total contribution margin.
Special Order:
Contribution margin per unit
Number of units
Total contribution margin
Regular production:
Contribution margin per unit
Number of units
Total contribution margin
Total contribution margin for both:
Additional direct-labor costs
Additional variable overhead
Total contribution margin for both (with additional costs)
Cook
Baker
Total
$
7 $
50,000
15
30,000
$
350,000 $
450,000 $ 800,000
$
12 $
25
230,000
120,000
$ 2,760,000 $
3,000,000 $ 5,760,000
$ 6,560,000
$ 6,560,000
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Assume that, in the situation presented in requirement b-1, the plant can work overtime. Direct labor costs for the overtime production increase to $45 per hour. Variable overhead costs for overtime production are $6 per hour more than for normal production. Complete the table below to determine the total contribution margin. Special Order: Contribution margin per unit Number of units Total contribution margin Regular production: Contribution margin per unit Number of units Total contribution margin Total contribution margin for both: Additional direct-labor costs Additional variable overhead Total contribution margin for both (with additional costs) Cook Baker Total $ 7 $ 50,000 15 30,000 $ 350,000 $ 450,000 $ 800,000 $ 12 $ 25 230,000 120,000 $ 2,760,000 $ 3,000,000 $ 5,760,000 $ 6,560,000 $ 6,560,000
Oakland Precision Products (OPP) manufactures and sells a variety of scales for the kitchen and office. OPP sells primarily to
kitchenware stores, discount stores, and so on. Two of the scales it produces for kitchen use are the Cook and Baker. The Cook is a
basic food scale. The Baker has a greater capacity and special features that facilitate adjusting baking recipes for more or fewer
people. The following information is available:
Costs per unit
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total cost per unit
Price
Units produced and sold
2.40
15.00
Cook
$ 1.60
Baker
$ 14.40
0.80
3.20
0.60
8.00
$ 11.00
$ 35.00
$ 15.00
230,000
$ 45.00
120,000
The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of
20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours.
Transcribed Image Text:Oakland Precision Products (OPP) manufactures and sells a variety of scales for the kitchen and office. OPP sells primarily to kitchenware stores, discount stores, and so on. Two of the scales it produces for kitchen use are the Cook and Baker. The Cook is a basic food scale. The Baker has a greater capacity and special features that facilitate adjusting baking recipes for more or fewer people. The following information is available: Costs per unit Direct materials Direct labor Variable overhead Fixed overhead Total cost per unit Price Units produced and sold 2.40 15.00 Cook $ 1.60 Baker $ 14.40 0.80 3.20 0.60 8.00 $ 11.00 $ 35.00 $ 15.00 230,000 $ 45.00 120,000 The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours.
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