What is total production cost? Subject: Batch CostingSapphire Glass Studio uses batch costing:Raw materials: Base cost $150/batchEach worker produces 3 batches per shiftEvery batch consumes electricity worth 15% of raw materialsIf 4 workers complete full shifts, determine total production cost.

4 workers with complete full shifts x 3 batches per worker = 12 batches Raw materials cost = 150 per…

Answered: Subject: Batch Costing Sapphire Glass…

Principles of Accounting Volume 2

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Chapter6: Activity-based, Variable, And Absorption Costing

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Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
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Subject: Batch Costing Sapphire Glass Studio uses batch costing: Raw materials: Base cost $150/batch Each worker produces 3 batches per shift Every batch consumes electricity worth 15% of raw materials If 4 workers complete full shifts, determine total production cost.