Hiren E7-16 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7]Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these productsfollows:Sales priceVariable costs per unitFixed costs per unitRequired number of labor hoursProduct A$ 51.0017.007.002.00Product B$ 61.00Product C$ 91.0011.0025.007.002.507.004.00Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demandfor its products:Product AProduct BProduct CRequired:16,000 units10,000 units6,000 unitsGiven the company's limited resource and expected demand, compute how many units of each product Cordova should produce tomaximize its profit.Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Roundyour answers to the nearest whole number.ProductUnits Produced

In order to maximize profits while dealing with limited work hours, it is necessary to establish the…

Answered: E7-16 (Algo) Making Decisions Involving…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Fixed costs per unit Sales price Variable costs per unit Required number of labor hours Product A $ 36.00 18.50 Product B $ 46.00 Product C $ 77.00 4.00 21.20 4.00 38.50 1.25 2.00 4.00 2.50 Cordova currently is limited to 40,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per…
E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Product A $ 45.00 21.30 Product B $ 55.00 Product C $ 95.00 Fixed costs per unit Required number of labor hours 7.00 1.50 23.00 7.00 2.50 37.30 7.00 3.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per…
E7-16 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Product A $ 51.00 17.00 7.00 2.00 16,000 units 10,000 units 6,000 units Product B $ 61.00 11.00 7.00 2.50 Cordova currently is limited to 60,000 labor hours per month. Cordova's marketing department has determined the following demand for its products: Product C $ 91.00 25.00 7.00 4.00 Required: Given the company's limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. Note: Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number. Product Units Produced
6.9. Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either process A or process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen? Fixed Cost Variable CostProcess A $ 8,000 $10Process B $20,000 $ 4Supplier $ 0 $20
Required information M6-17, M6-18, M6-19 (Algo) Analyzing Multiproduct CVP [LO 6-6] [The following information applies to the questions displayed below.] Edgewater Enterprises manufactures two products. Information follows: Sales price Variable cost per unit Product mix M6-17 [LO 6-6] Product A $ 12.50 $ 6.25 40% Weighted average CM Product B $ 15.75 Required: Calculate Edgewater's weighted-average contribution margin per unit. Note: Round your intermediate calculations and final answer to 2 decimal places. per unit $6.95 60%
S [The following information applies to the questions displayed below.] Hosmer Industries provides the following information about resources and usage: Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Unused Resources Capacity $ 6,600 3,924 2,160 4,680 18,600 8,520 7,080 $ 352,200 47,988 59,076 62, 280 38,520 74,568 128,040 Required: a. Compute the cost driver rate for each resource. Cost Driver Volume 6,400 pounds 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters
Requirea information The Foundational 15 (Algo) [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6] [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Foundational 1-9 (Algo) Average Cost per Unit $6.60 $4.10 $1.50 $ 4.00 $ 3.60 $ 2.00 $1.00 $0.50 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total fixed manufacturing cost
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs 1 0 $ 2,900 2 460 3,774 3 860 4,534 4 1,260 5,294 5 1,660 6,054 6 2,060 6,814 7 2,460 7,574 8 2,860 8,334 9 3,260 9,094 10 3,660 9,854 Exercise 21-6A (Algo) Appendix: Measuring costs using regression LO P1 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Cost equation = + per unit
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answerb. Kantrovitz has 8,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answerc. During the next year,…
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? Answer: $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum…
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer c. During the next…
bloii Q2. Read the following case relating to a toy manufacturing company produces two products: Product A and B and solve the questions given at the end of the case using the data. The budgeted cost information for each product is as follows. Particulars Product-A Product- B Material 30 40 Labor 20 15 Production overhead cost incurred Machine cost 300000 700000 Set up cost Quality inspection cost Total 250000 1250000 For each of product "A" and "B" we are also given the following information: Product "A" Product "B" No of units produced No production runs No of inspection 20000 40000 180 100 300 400 No of machine hours 50000 50000 Requirements: 1. Calculate the cost of each unit of product "A" and "B" under absorption (Traditional method) costing using the number of units as basis of absorption. 2. Calculate the cost of each unit of product "A" and "B" using ABC system. In this case we are required to suggest the toy company whether to adopt ABC or not.

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