Question
In: Accounting
QUESTION 1 Utilization of a Constrained Resource Westburne Company produces three products: Alpha, Omega and Beta....
QUESTION 1
Utilization of a Constrained Resource
Westburne Company produces three products: Alpha, Omega and Beta. Data (per unit) concerning the three products follow:
Alpha Omega Beta
Selling price $160 $112 $140
Less variable expenses:
Direct materials 48 30 18
Labour and overhead 48 54 80
Total variable expenses 96 84 98
Contribution margin $64 $28 $42
Contribution margin ratio 40% 25% 30%
Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $6 per kilogram, with a maximum of 10,000 kilograms available each month.
Required:
Which orders would you advise the company to accept first, those for Alpha, Omega or Beta? Which orders second? Third?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$259,200.00
3
Setup
55,000.00
4
Material handling
9,750.00
5
Inspection
60,000.00
6
Product engineering
123,200.00
7
Total
$507,150.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$278,280.00
3
Setup
82,677.00
4
Material handling
11,110.00
5
Inspection
54,918.00
6
Product engineering
144,361.00
7
Total
$571,346.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$242,089.00
3
Setup
88,425.00
4
Material handling
9,253.00
5
Inspection
49,623.00
6
Product engineering
167,990.00
7
Total
$557,380.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$242,089.00
3
Setup
88,425.00
4
Material handling
9,253.00
5
Inspection
49,623.00
6
Product engineering
167,990.00
7
Total
$557,380.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:?
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$251,598.00
3
Setup
92,035.00
4
Material handling
10,736.00
5
Inspection
49,833.00
6
Product engineering
136,230.00
7
Total
$540,432.00
The activity bases identified for...
Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in...
Mello Manufacturing Company is a diversified manufacturer that
manufactures three products (Alpha, Beta, and Omega) in a
continuous production process. Senior management has asked the
controller to conduct an activity-based costing study. The
controller identified the amount of factory overhead required by
the critical activities of the organization as follows:
1
Activity
Activity Cost Pool
2
Production
$270,840.00
3
Setup
98,945.00
4
Material handling
10,604.00
5
Inspection
44,100.00
6
Product engineering
139,380.00
7
Total
$563,869.00
The activity bases identified for...
Exercise 10-8 Utilization of a Constrained Resource [LO10-5, LO10-6] Barlow Company manufactures three products: A, B,...
Exercise 10-8 Utilization of a Constrained Resource [LO10-5,
LO10-6]
Barlow Company manufactures three products: A, B, and C. The
selling price, variable costs, and contribution margin for one unit
of each product follow:
Product
A
B
C
Selling price
$
200
$
300
$
260
Variable
expenses:
Direct
materials
28
70
35
Other
variable expenses
112
110
160
Total variable
expenses
140
180
195
Contribution
margin
$
60
$
120
$
65
Contribution margin
ratio
30
%
40
%...
Dustin Co. makes three products, A, B and C. They have a constrained resource - machine...
Dustin Co. makes three products, A, B and
C.
They have a constrained resource - machine hours. There
are only 17,892 machine hours available a month.
The three products have the following data:
A
B
C
Selling Price per unit
6.00
16.00
11.00
Variable Cost per unit
2.00
4.00
6.00
Machine hours required
2
4
5
Demand for product in units
1,114
4,125
1,073
How much of product B should be produced?
Problem 7-25 Utilization of a Constrained Resource [LO7-5, LO7-6] The Walton Toy Company manufactures a line...
Problem 7-25 Utilization of a Constrained Resource [LO7-5,
LO7-6] The Walton Toy Company manufactures a line of dolls and a
doll dress sewing kit. Demand for the dolls is increasing, and
management requests assistance from you in determining an
economical sales and production mix for the coming year. The
company has provided the following data:
Product
Demand
Next Year
Selling
Price Per Unit
Direct
Materials
Direct
labor
Debbie
50,000.00
$13.50
$4.30
$3.20
Trish
42,000.00
$5.50
$1.10
$2.00
Sarah
35,000.00
$21.00...
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