Sales price Direct materials 58 62 76 12 13 14 Direct labor 5 9. Variable manufacturing overhead Fixed manufacturing overhead 6. Required number of labor hours Required number of machine hours 0.50 0.50 1.00 4.00 2.50 2.00 Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A 60,000 units 20,000 units 20,000 units Table B Table C Required: 1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 4. If Blossom has only 250,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit.

Sales price Direct materials 58 62 76 12 13 14 Direct labor 5 9. Variable manufacturing overhead Fixed manufacturing overhead 6. Required number of labor hours Required number of machine hours 0.50 0.50 1.00 4.00 2.50 2.00 Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A 60,000 units 20,000 units 20,000 units Table B Table C Required: 1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. 3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3. 4. If Blossom has only 250,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit.

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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