Satisfy demand for all four products

Assignment Help Cost Accounting
Reference no: EM13519182

Gluth Company makes three products in a single facility. These products have the following unit product costs:


Products


A

B

C

Direct materials

$22.50

$22.40

$29.20

Direct labor

13.60

11.40

12.50

Variable manufacturing overhead

3.00

3.40

4.50

Fixed manufacturing overhead

19.20

20.10

26.50

Unit product cost

$58.30

$57.30

$72.70

Additional data concerning these products are listed below.


Products


A

B

C

Mixing minutes per unit

3.30

1.70

1.80

Selling price per unit

$74.70

$76.10

$87.50

Variable selling cost per unit

$1.80

$2.40

$2.90

Monthly demand in units

4,000

2,000

4,000

The mixing machines are potentially the constraint in the production facility. A total of 23,200 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

Required:

a. How many minutes of mixing machine time would be required to satisfy demand for all four products?

b. How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.)

c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round off to the nearest whole cent.)

Reference no: EM13519182

Questions Cloud

What will rop be under conditions : Daily demand = 100 units; performance cycle = 8 days; ROP= 800; Average Inventory Level = 400. How ROP might change, if we review inventory once each week and what will ROP be under these conditions?
Compute the magnification of the image formed by the lens : An object is placed to the left of a convex lens and on the optical axis. What is the magnification of the image formed by the lens
Explain the molecular orbital theory in physical chemistry : The Molecular Orbital Theory in Physical Chemistry. What does point symmetry mean and what does it have to do with bonding/anti-bonding
Risk management authorities : Risk management authorities
Satisfy demand for all four products : How many minutes of mixing machine time would be required to satisfy demand for all four products - how much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.)
Explain cyclopentanone in the presence of naoh and ethanol : What's the name of the product when 2(4-methoxybenzaldehyde) reacts with cyclopentanone in the presence of NaOH and ethanol.
Finco must determine how much investment : Finco must determine how much investment and debt to undertake during the next year
Evaluate the molarity of a 5.72 m aqueous sucrose : Calculate the molarity of a 5.72 m aqueous sucrose (C12H22O11) solution with a density of 1.50 g/mL.
How many minutes of mixing machine time would be required : How many minutes of mixing machine time would be required to satisfy demand for all four products and how much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.)

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd