SixthZ can make three different types of treehouses - large treehouses, medium treehouses, and small treehouses. Data for these types of treehouses is given in the table below. SixthZ is constrained by the number of employees it can find to paint the treehouses. Large Medium Small Selling Price Per Set $1,300 $1,150 $800 Direct Materials Per Set $600 $400 $300 Direct Labor Per Set $150 $120 $75 ($15/hr) VMO Per Set ($2 per Direct $20 $16 $10 Labor hour) FMO Per Set $80 $80 $80 Variable Selling & Administrative Expenses $15 $12 $10 Per Set Fixed Selling & Administrative Expenses $25 $25 $25 Per Set Assuming that direct labor hours are limited, which model is the most profitable to produce? O Small Treehouses O Large Treehouses O SixthZ does not have enough information to make this decision Medium Treehouses

SixthZ can make three different types of treehouses - large treehouses, medium treehouses, and small treehouses. Data for these types of treehouses is given in the table below. SixthZ is constrained by the number of employees it can find to paint the treehouses. Large Medium Small Selling Price Per Set $1,300 $1,150 $800 Direct Materials Per Set $600 $400 $300 Direct Labor Per Set $150 $120 $75 ($15/hr) VMO Per Set ($2 per Direct $20 $16 $10 Labor hour) FMO Per Set $80 $80 $80 Variable Selling & Administrative Expenses $15 $12 $10 Per Set Fixed Selling & Administrative Expenses $25 $25 $25 Per Set Assuming that direct labor hours are limited, which model is the most profitable to produce? O Small Treehouses O Large Treehouses O SixthZ does not have enough information to make this decision Medium Treehouses

Name: SixthZ can make three different types of treehouses - large treehouse
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Description: SixthZ can make three different types of treehouses - large treehouses, medium treehouses, andsmall treehouses. Data for these types of treehouses is given in the table below. SixthZ isconstrained by the number of employees it can find to paint the

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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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 47.00 $ 57.00 $ 87.00 Variable costs per unit 22.70 12.00 38.70 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 14,000 units Product B 9,000 units Product C 10,000 units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) Product Units Produced
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Conspicuous Limo uses activity-based costing for its two models of stretch Hummer limousines: Big and Too Big. There are three activity cost pools related to production, with estimated costs and expected activity as follows: Amount of Activity Activity Cost Pool Estimated Cost Activity cost driver Big Too Big Fabrication $181,500 Labor hours 600 500 Painting $650,000 Machine hours 1,600 300 Finishing $2,750,000 Units 470 530 What are the activity rates for fabrication and painting?
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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours. Product A $ 55.00 Product B $ 65.00 19.80 10.00 Product C $ 95.00 27.40 5.00 2.50 5.00 4.00 5.00 2.00 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product A Product B Product C Required: 13,000 units 10,000 units 6,000 units Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product B A C Units Produced
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Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $200 for Glide and $300 for Ultra. (e) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Contribution margin per direct labor hour Glide Ultra Required B > D
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