D1. PR 14-44 (Algo) Production Decisions; Limited Capacity (LO 14-5, 14-6)Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products.Direct materialDirect laborManufacturing overhead @ $54 per machine hourCost if purchased from an outside supplierAnnual demand (units)BlenderRequired 1 Required 2$2620546828,000Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $42.Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.ManufacturePurchaseMixerRequired:1. If 60,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each productshould the firm manufacture? How many units of each product should be purchased?2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $26 per unit, how manyunits of each product should be manufactured? Purchased?Complete this question by entering your answers in the tabs below.Mixer$ 453310811634,000If 60,000 machine hours are available, and management desires to follow an optimal strategy, how many units of eachproduct should the firm manufacture? How many units of each product should be purchased?Blender PR 14-44 (Algo) Production Decisions; Limited Capacity (LO 14-5, 14-6)Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products.Direct materialDirect laborManufacturing overhead @ $54 per machine hourCost if purchased from an outside supplierAnnual demand (units)Required 1 Required 2BlenderPast experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $42.Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.Required:1. If 60,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each productshould the firm manufacture? How many units of each product should be purchased?$2620546828,0002. With all other things constant, if management is able to reduce the direct material for an electric mixer to $26 per unit, how manyunits of each product should be manufactured? Purchased?Complete this question by entering your answers in the tabs below.ManufacturePurchaseMixerBlenderMixer$453310811634,000With all other things constant, if management is able to reduce the direct material for a electric mixer to $26 per unit, howmany units of each product should be manufactured? Purchased?Note: Round your intermediate calculations to 2 decimal places.

A Manufacturing Entity has to do proper cost and benefit analysis before starting its…

PR 14-44 (Algo) Production Decisions; Limited Capacity (LO 14-5, 14-6) Kitchen Magician, Incorporated, has assembled the following data pertaining to its two most popular products. Blender Mixer $26 $45 20 33 ]] 54 108 68 116 28,000 34,000 Direct material Direct labor Manufacturing overhead @ $54 per machine hour Cost if purchased from an outside supplier Annual demand (units) Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $42. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 60,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased? 2. With all other things constant, if management is able to reduce the direct material for an electric mixer to $26 per unit, how many units of each product should be manufactured? Purchased? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If 60,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased? Blender Manufacture Mixer

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q