PRODUCT MIX DECISION 8. ELEMENTAL HERO CORP. makes three products in a single facility. Data concerning these products follow: Product C P63.30 Product A P64.50 P20.90 P30.80 P1.60 P1.00 3.50 4,000 Product B P64.80 Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units The mixing machines are potentially the constraint in the production facility. A total of 32,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. REQUIREMENTS: Hn mar P18.30 P26.00 P2.10 P1.50 3.50 4,000 P14.50 P33.40 P1.90 P3.40 3.10 2,000 527 -.. How many units of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) What is the expected total contribution margin of ELEMENTAL HERO if it will follow the proposed (c) (d) action maximizing its net income? (e) Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

PRODUCT MIX DECISION 8. ELEMENTAL HERO CORP. makes three products in a single facility. Data concerning these products follow: Product C P63.30 Product A P64.50 P20.90 P30.80 P1.60 P1.00 3.50 4,000 Product B P64.80 Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units The mixing machines are potentially the constraint in the production facility. A total of 32,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. REQUIREMENTS: Hn mar P18.30 P26.00 P2.10 P1.50 3.50 4,000 P14.50 P33.40 P1.90 P3.40 3.10 2,000 527 -.. How many units of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) What is the expected total contribution margin of ELEMENTAL HERO if it will follow the proposed (c) (d) action maximizing its net income? (e) Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Name: PRODUCT MIX DECISIONELEMENTAL HERO CORP. makes three products in a si
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Description: PRODUCT MIX DECISIONELEMENTAL HERO CORP. makes three products in a single facility. Data concerning these productsfollow:Product AP64.50P20.90P30.80P1.60Product BP64.80P14.50P33.40P1.90Product CSelling price per unitDirect materialsDirect laborVaria

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...

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Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E0 Product Ne Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Multiple Choice $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production Per Unit 10.1 410 1,550 9.1 $51.98 per MH $21.40 per MH Activity Measures DLHS orders MHs Total Direct Labor- Hours $ 301,890 61,087 585,366 $948,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 4,141 14, 105 18,246 Product E 4,141 850 5,550 Expected Activity Product NO 14, 105 950 5,250 Total 18,246 1,800 10,800
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An allocation base: a. can be units of output if the company has a single product O b. is determined before the period begins. O c. All the given answers are correct. O d. can be direct labor cost e. is a measure used to assign manufacturing overhead costs to products and services PAGE NEXT PAGE IZ TWO Jump CQURSE OUTLINE_SPRING2021 ► tv MacBook Air
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