Question
In: Accounting
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product...
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below.
|
Product |
||||||
|
D |
E |
F |
||||
| Selling price | $181.00 | $283.20 | $233.00 | |||
| Direct labor costs | 28.60 | 83.60 | 34.10 | |||
| Other variable costs | 90.00 | 78.00 | 140.00 | |||
The company has 1,900 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $11.
| Product | Direct Labor Cost Per unit | Direct Labor Hours Per unit | |
| a | b | c=b/$11 | |
| Peoduct D | $ 28.60 | 2.60 | hours per unit |
| Peoduct E | $ 83.60 | 7.60 | hours per unit |
| Peoduct F | $ 34.10 | 3.10 | hours per unit |
Determine the contribution margin per direct labor hour.
(Round intermediate calculation and final answers to 2
decimal places, e.g. 52.75.)
|
Product D |
Product E |
Product F |
||||
| Contribution margin per direct labor hour |
$ |
$ |
$ |
Solutions
Expert Solution
| Product | Selling price per unit | Direct Labor Cost Per unit | Other variable cost | Contribution margin per unit | Direct Labor Hours per unit | Contribution margin per labor hour |
| a | b | c | d | e=b-c-d | f | fg=f/e |
| Peoduct D | 181 | $ 28.60 | 90 | $ 62.40 | 2.6 | $ 24.00 |
| Peoduct E | 283.2 | $ 83.60 | 78 | $ 121.60 | 7.6 | $ 16.00 |
| Peoduct F | 233 | $ 34.10 | 140 | $ 58.90 | 3.1 | $ 19.00 |
| Summery | |||
| Product D | Product E | Product F | |
| Contribution margin per direct labor hour | $ 24 | $ 16 | $ 19 |
ekkarill92 answered 2 years agoRelated Solutions
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product...
Dalton Inc. produces and sells three products. Unit data
concerning each product is shown below.
Product
D
E
F
Selling price
$ 190.6
$ 297.5
$ 246.4
Direct labor costs
28.6
84.7
34.1
Other variable costs
97
78
141
The company has 2,200 hours of labor available to build inventory
in anticipation of the company’s peak season. Management is trying
to decide which product should be produced. The direct labor hourly
rate is $ 11 .
A) Number of direct...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
F
G
H
Selling price
$
60
$
40
$
70
Variable costs
$
25
$
15
$
30
Fixed costs
$
50
$
5
$
47
Milling machine time (minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Demand for the three products exceeds the company's productive
capacity. The milling...
Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three...
Garson, Inc. produces three products. Data concerning the
selling prices and unit costs of the three products appear
below:
Product
F
G
H
Selling price
$
75
$
55
$
85
Variable costs
$
50
$
40
$
55
Fixed costs
$
45
$
8
$
42
Milling machine time (minutes)
10
5
5
Fixed costs are applied to the products on the basis of direct
labor hours.
Demand for the three products exceeds the company's productive
capacity. The milling...
Mcdale Inc. produces and sells two ... Mcdale Inc. produces and sells two products. Data concerning...
Mcdale Inc. produces and sells two ...
Mcdale Inc. produces and sells two products. Data concerning
those products for the most recent month appear below:
Product I49V
Product Z50U
Sales
$
42,000
$
47,000
Variable expenses
$
13,000
$
28,830
The fixed expenses of the entire company were $38,960. The
break-even point for the entire company is closest to:
Multiple Choice
Top of Form
$80,790
$73,509
$38,960
$46,080
A cement manufacturer has supplied the following ...
A cement manufacturer has...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
84.00
$
70.00
$
74.00
Variable expenses:
Direct materials
25.20
21.00
9.00
Other variable expenses
25.20
31.50
42.80
Total variable expenses
50.40
52.50
51.80
Contribution margin
$
33.60
$
17.50
$
22.20
Contribution margin ratio
40
%
25
%
30
%
The company estimates that it can sell 750 units of each product
per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling
price
$
88.00
$
72.00
$
78.00
Variable
expenses:
Direct
materials
26.40
18.00
9.00
Other variable
expenses
26.40
36.00
45.60
Total variable
expenses
52.80
54.00
54.60
Contribution
margin
$
35.20
$
18.00
$
23.40
Contribution
margin ratio
40
%
25
%
30
%
The company estimates that it can sell 900 units of each product
per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit): Product A B C
Selling price $ 88.00 $ 72.00 $ 78.00 Variable expenses: Direct
materials 26.40 18.00 9.00 Other variable expenses 26.40 36.00
45.60 Total variable expenses 52.80 54.00 54.60 Contribution margin
$ 35.20 $ 18.00 $ 23.40 Contribution margin ratio 40 % 25 % 30 %
The company estimates that it can sell 900 units of each product
per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
72.00
$
60.00
$
62.00
Variable expenses:
Direct materials
21.60
18.00
9.00
Other variable expenses
21.60
27.00
34.40
Total variable expenses
43.20
45.00
43.40
Contribution margin
$
28.80
$
15.00
$
18.60
Contribution margin ratio
40
%
25
%
30
%
The company estimates that it can sell 1,000 units of each
product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
80.00
$
66.00
$
72.00
Variable expenses:
Direct materials
24.00
16.50
12.00
Other variable expenses
24.00
33.00
38.40
Total variable expenses
48.00
49.50
50.40
Contribution margin
$
32.00
$
16.50
$
21.60
Contribution margin ratio
40
%
25
%
30
%
The company estimates that it can sell 700 units of each product
per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
72.00
$
60.00
$
62.00
Variable expenses:
Direct materials
21.60
18.00
9.00
Other variable expenses
21.60
27.00
34.40
Total variable expenses
43.20
45.00
43.40
Contribution margin
$
28.80
$
15.00
$
18.60
Contribution margin ratio
40
%
25
%
30
%
The company estimates that it can sell 1,000 units of each
product per month. The same...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Joni is a financial planner for ABC firm. She provided all of her clients with the...
- Suppose you plan to retire in 40 years. If you make 10 annual investments of $...
- PLEASE DONT FORGET TO SOLVE THE ASSIGNMENT QUESTION MOST IMP: Ex1) Download the code from the...
- Customer is saying website is running slow when his end clients are trying to access the...
- Note: The answers to the following questions should be typed in the block of comments in...
- Python Describe the procedure for setting up the display of an image in a window.
- what are the fundamental similarity and differences between gap and dgap?
ADVERTISEMENT