) Kofi Brokeman Ltd manufactures four products using the same machinery. The following details relate to...

) Kofi Brokeman Ltd manufactures four products using the same machinery. The following
details relate to its cost and sales per unit of each product:
Fandango FanChoco Fanice Choco Malt
GHȼ GHȼ GHȼ GHȼ
Selling price 28 30 45 42
Direct material 5 6 8 6
Direct labour 4 4 8 8
Variable overhead 3 3 6 6
Fixed overhead* 8 8 16 16
Profit 8 9 7 6
Labour hours 0.25 0.25 0.50 0.50
Machine hours 4 3 4 5
Units Units Units Units
Maximum demand per week 200 180 250 100
*Fixed costs are GHȼ8,000 per week.
There is a maximum of 2000 machine hours available per week.
Requirement:
Determine the production plan that will maximize the weekly profit of Kofi Brokeman Ltd and
prepare a profit statement showing the profit your plan will yield. (15 marks

Expert Solution

--------------------------------------------------------------------------------------------------

"ANSWER IS SOLVED AS PER GIVEN QUESTION"
ALL THE BEST!!!! If any doubts, drop your message in the comments box! Thank you!!!
#STAY SAFE

ekkarill92 answered 2 years ago

a) Kofi Brokeman Ltd manufactures four products using the same machinery. The following details relate to its cost and sales per unit of each product:

a) Kofi Brokeman Ltd manufactures four products using the same machinery. The following details relate to its cost and sales per unit of each product: Fandango FanChoco Fanice Choco Malt GHȼ GHȼ GHȼ GHȼ Selling price 28 30 45 42 Direct material 5 6 8 6 Direct labour 4 4 8 8 Variable overhead 3 3 6 6 Fixed overhead* 8 8 16 16 Profit 8 9 7 6 Labour hours 0.25 0.25 0.50 0.50 Machine hours 4 3 4 ...

PDR Co. manufactures 4 products using the same machinery. The following details relate to its 4...

PDR Co. manufactures 4 products using the same machinery. The following details relate to its 4 products. Product A Product B Product C Product D $ per unit $ per unit $ per unit $ per unit Selling price 28 30 45 42 Direct material 5 6 8 6 Direct labor 4 4 8 8 Variable overhead 3 3 6 6 Fixed overhead * 8 8 16 16 Profit 8 9 7 6 Labour hrs.per unit 1 1 2 2...

Petral Ltd. Manufactures 2 products, W and Z using the same factory and facilities. Details provided...

Petral Ltd. Manufactures 2 products, W and Z using the same factory and facilities. Details provided below: Product Line Vol of Production Material (direct) cost per unit Direct labour per unit Machine time per unit Labour cost per unit W 600 $6 0.75hr 0.5hr $4 Z 7100 $18 1.25hrs 1.75hrs $10 Production overhead is comprised of the following costs: Description of cost Amount Factory overhead related to machine activity- $42,725 Set-up costs- $8,725 Cost of handling materials- $11,725 Administration costs...

A company manufactures four products using the same plant and processes. The following information relates to...

A company manufactures four products using the same plant and processes. The following information relates to a production period: - Product Volume Material costs per unit Direct labour time per unit Machine time per unit Labour cost per unit A 1,100 £7 30 minutes 15 minutes £5 B 2,000 £7 30 minutes 15 minutes £5 C 1,500 £16 120 minutes 60 minutes £9 D 3,950 £19 90 minutes 90 minutes £9 Total production overhead recorded by the cost accounting system...

Aston International Products Ltd manufactures four products A, B, C and D. The budget for the...

Aston International Products Ltd manufactures four products A, B, C and D. The budget for the upcoming financial year is as follows: Details A B C D Total $’000 $’000 $’000 $’000 $’000 Direct materials 20,000 10,000 12,000 24,000 66,000 Direct labour 6.000 4,000 7,000 8,000 25,000 Variable overheads 2,000 1,000 3,000 6,000 12,000 28,000 15,000 22,000 38,000 103,000 Sales 50,000 19,000 18,000 52,000 139,000 Contribution 22,000 4,000 (4,000) 14,000 36,000 Fixed costs (8,000) (6,000) (2,000) (7,000) (23,000) Profit/(loss) 14,000...

t CASE 2: AMAZON LTD Multibus Ltd manufactures four products namely; A, B, C and D...

t CASE 2: AMAZON LTD Multibus Ltd manufactures four products namely; A, B, C and D using the same plant and processes. The following data relate to the production activities of the company for the period ended 30th November 2008: Product Number of units Material cost per unit (Sh) Labour cost per unit (Sh) Machine time per unit (hours) A 500,000 5 0.5 0.25 B 5,000,000 5 0.5 0.25 C 600,000 16 2.0 1.00 D 7,000,000 17 1.5 1.50 ...

The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2014. Machinery...

The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2014. Machinery A B C D Original cost $63,480 $70,380 $110,400 $110,400 Year purchased 2009 2010 2011 2013 Useful life 10 years 15,000 hours 15 years 10 years Salvage value $4,278 $4,140 $6,900 $6,900 Depreciation method Sum-of-the-years'-digits Activity Straight-line Double-declining balance Accum. depr through 2014* $43,056 $48,576 $20,700 $22,080 *In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the...

Firm Z manufactures 3 products using the same machine. At the weekly market demand for the...

Firm Z manufactures 3 products using the same machine. At the weekly market demand for the product (see below), the firm is limited in terms of machine capacity - 450 hours per week. Product Machine hours required per unit of product Maximum demand in units Contribution margin per unit A 3 hours machinery hours, maximum demand in units 100, Contribution margin £9 B 2 hours machinery hours, maximum demand in units 100, contribution margin £7 C 1 hour machinery hours,...

A company manufactures three products using the same production process. The costs incurred up to the...

A company manufactures three products using the same production process. The costs incurred up to the slit-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the slit-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows: Product Number of Units Produced Selling Price at Split-Off Selling price after...

Amazon ltd produces three products; A, B, C and D using the same processing plant. The...

Amazon ltd produces three products; A, B, C and D using the same processing plant. The following information relates to the company: Product A B C D Units produced 2,000 20,000 2,400 28,000 Material cost per unit (sh) 20 20 64 68 Labour hours per unit 2 2 8 6 Machine hours per unit 1 1 4 6 Labour cost per unit (sh) 12 12 48 36 The cost accountant analysed the production overheads recorded under the...

Question