A chemical company produces a special industrial chemical that is a blend of three chemical ingredients....

A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost per pound, the ending-year cost per pound, and the blend proportions follow. (Round your answers to the nearest integer.)

	Cost per Pound ($)
Ingredient	Beginning	Ending	Quantity (pounds) per 100 Pounds of Product
A	1.50	3.45	25
B	8.75	9.90	10
C	0.99	0.90	70

(a)

Compute the price relatives for the three ingredients.

Item	Price Relative
A
B
C

(b)

Compute a weighted average of the price relatives to develop a one-year cost index for raw materials used in the product.

I =

What is your interpretation of this index value?

Cost of raw materials is up % for the chemical.

Expert Solution

orchestra answered 2 years ago

Blend corporation produces two types of blenders. The blenders are produces using a special metal. Due...

Blend corporation produces two types of blenders. The blenders are produces using a special metal. Due to global supply chain problems, the supply of the metal is limited and Blend is able to obtain only 20,000 pounds. Which blender should Blend produce given the following information? Deluxe Basic Unit Selling Price $95 $75 Unit Variable Costs 57 45 Unit Contribution Margin $38 $30 Number of Pounds of metal per blender 4 2.5 Required Assume that there is no shortage...

The Bartlesville plant of Harmon Company produces an industrial chemical. At the beginning of the year,...

The Bartlesville plant of Harmon Company produces an industrial chemical. At the beginning of the year, the Bartlesville plant had the following standard cost sheet: Direct materials (10 kg @ R1.60 per kg) R16.00 Direct labour (0.75 hour @ R18 per hour) R13.50 Variable overhead (0.75 hour @ R3 per hour) R2.25 Fixed overhead (0.75 hour @ R4 per hour) R3.00 Standard cost per unit R34.75 The Bartlesville plant calculates its overhead rates using practical volume, which is 72 000...

The Bartlesville plant of Harmon Company produces an industrial chemical. at the beginning of the year,...

The Bartlesville plant of Harmon Company produces an industrial chemical. at the beginning of the year, the Bartlesville plant had the following standard cost sheet: Direct material: (10 pounds @ $1.60) $16.00 Direct labor: (0.75 hours @ $18.00) $13.50 Variable overhead: (0.75 @ $4.00) $3.00 Fixed overhead: (0.75 @ $3.00) $2.25 _____ Standard cost per unit $34.75 The Bartlesville plant computes its overhead rates using practical volume, which is 72,000 units. The actual results for the year are as...

The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons)...

The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in thousands of gallons) for the next four quarters are 80, 50, 80, and 130, respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime. a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the...

Crescent Oil has developed three new blends of gasoline – Blend X, Blend Y and Blend...

Crescent Oil has developed three new blends of gasoline – Blend X, Blend Y and Blend Z, and must decide which blend or blends to produce and distribute. A study of the miles per gallon ratings of the three blends is being conducted to determine if the mean ratings are the same for the three blends. Five automobiles- 1, 2 3, 4 and 5, have been tested using each of the three gasoline blends and the miles per gallon ratings...

Happy Dog inc produces three types of dog food. Puppy blend is produced for dogs that...

Happy Dog inc produces three types of dog food. Puppy blend is produced for dogs that are less than 1 year old. Adult bed for dogs between 1 and 8 years old, and Geriatric blend for dogs over 8 years old. Each bag has a unique recipe that requires, among other ingredients, exact quantities of certain raw materials. Formulate a linear porgramming model that produces as many bags of dog food as possible without exceeding the demand or the available...

e Elixer Drug Company produces a drug from two ingredients. Each ingredient contains the same three...

e Elixer Drug Company produces a drug from two ingredients. Each ingredient contains the same three antibiotics, in different proportions. One gram of ingredient 1 contributes 3 units, and 1 gram of ingredient 2 contributes 1 unit of antibiotic 1; the drug requires 6 units. At least 4 units of antibiotic 2 are required, and the ingredients contribute 1 unit each per gram. At least 12 units of antibiotic 3 are required; a gram of ingredient 1 contributes 2 units,...

The company ULW uses three special ship to deliver three different chemical-product X, Y and Z. The transportation...

The company ULW uses three special ship to deliver three different chemical-product X, Y and Z. The transportation time of a ship to its customers is one week. Each ship has got four special compartments. First compartment has a capacitiy of 13.000 tons. The second compartment has a capacitiy of 15.000 tons. The third one has got a capacity of 16.000 tons, and the last compartment has a capacity of 16.500 tons. The chemical-product X, Y and Z cannot be mixed with each...

chemical process industrial

Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and...

Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: Molding Grinding Finishing Department Department Department Direct materials $142,200 $14,900 $8,900 Direct labor 14,600 33,800 23,700 Applied overhead 17,800 135,000 18,400 During September, 9,000 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product...

Question