Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No. I || III IV Particulars Selling price (3) Variable cost (3) Contribution (2) Contribution per machine hour (2) Priority Available hours 19,800 (-) Hours for B (3,000 x 4) 12,000 7,800 Units of A = 7,800/3 = 2,600 A 10 8 2 2/3 = 0.67 || Statement showing optimum mix under given conditions and computation of profit at that mix Sl. No. Particulars B Total 1 No. of units 11 Contribution per unit (3) III Total contribution (2) IV Fixed cost (2) V Profit Selling price per unit (3) Variable cost per unit (2) Fixed expenses/month (3) Maximum production per month (units) Total hours available for the month Maximum demand per month (units) A A 2,600 2 5,200 p25 B 15 12 3 3/4= 0.75 I Problem 33 Taurus Ltd. produces three products A, B and C from the same manufacturing facilities. The cost and other details of the three products are as follows: 200 120 5,000 B 3,000 3 9,000 2,000 The processing hour cannot be increased beyond 200 hrs per month. You are required to: 160 120 8,000 14,200 9,900 4,300 4,000 C 100 40 2,76,000 6,000 200 2,400 (a) Compute the most profitable product-mix. (b) Compute the overall break-even sales of the co., for the month based in the mix calculated in (a) above. Statement showing computation of contribution per machine hour and determination of priority for profitability Sl. No. I || III IV Particulars Selling price (3) Variable cost (3) Contribution (2) Contribution per machine hour (2) Priority Available hours 19,800 (-) Hours for B (3,000 x 4) 12,000 7,800 Units of A = 7,800/3 = 2,600 A 10 8 2 2/3 = 0.67 || Statement showing optimum mix under given conditions and computation of profit at that mix Sl. No. Particulars B Total 1 No. of units 11 Contribution per unit (3) III Total contribution (2) IV Fixed cost (2) V Profit Selling price per unit (3) Variable cost per unit (2) Fixed expenses/month (3) Maximum production per month (units) Total hours available for the month Maximum demand per month (units) A A 2,600 2 5,200 p25 B 15 12 3 3/4= 0.75 I Problem 33 Taurus Ltd. produces three products A, B and C from the same manufacturing facilities. The cost and other details of the three products are as follows: 200 120 5,000 B 3,000 3 9,000 2,000 The processing hour cannot be increased beyond 200 hrs per month. You are required to: 160 120 8,000 14,200 9,900 4,300 4,000 C 100 40 2,76,000 6,000 200 2,400 (a) Compute the most profitable product-mix. (b) Compute the overall break-even sales of the co., for the month based in the mix calculated in (a) above.
Expert Answer:
Answer rating: 100% (QA)
a Statement showing computation of contribution per hour and determination of prior... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Posted Date:
Students also viewed these accounting questions
-
Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 00012 000 units REQUIRED: Calculate the following: a. Break-Even Point in b. Units to be sold to obtain the...
-
Selling price per unit, $40; total fixed expenses, $80,000; variable expenses per unit, $30. Assume that variable expenses are reduced by 20% per unit, and the total fixed expenses are increased by...
-
Units Unit Cost January 1 2016 beginning inventory2800 800 Purchases January 6 20163500 900 January 25 20163200 950 February 17 20162600 1000 March 27 20162900 1050 A physical inventory on March 31...
-
On January 5, Jones Ventures Inc. purchased 40% of the outstanding stock of Pilots Manufacturing Corp. The purchase was 20,000 shares at $10 per share. Jones received dividends from Pilots in the...
-
How is the 6-x-6 rule applied in preparing bulleted points?
-
Examine each of these probability assignments and state what makes it improper. (a) Concerning tomorrow's weather, P(Rain) = .4 P(Cloudy but no rain) = .5 P(Sunny) = .2 (b) Concerning your passing of...
-
\(\{4,450,864,339,889,157,339\}\) Find the least common multiple of the given set of numbers.
-
Denny Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The companys estimator has been involved in a long-simmering dispute with the on-site...
-
A CPA member working at a small biotech also is a member of a country club. He brags about getting such a great job and his poker buddies at the club brag back that they have bought call options on...
-
Wolfe Industries pays its employees on a semimonthly basis. Using the wagebracket tables in Appendix C, compute the federal income tax deductions for the following employees of Wolfe Industries. No...
-
Direct Materials Purchases Budget: Direct Labor Budget Macchu Company produces stuffed toy animals; one of these is "Andie the Llama. Each Andie takes 0.20 yard of fabric (white with irregular black...
-
Simplify: (5m 3) - (m + 2). Provide your answer below:
-
K How many terms are there in each of the following sequences? a. 42, 43, 44, 45, ..., 442 b. 1, 5, 52, 53, 560 c. 100, 200, 300, 400, ..., 50000 d. 1, 3, 9, 27, 81, 243, ..., 6561
-
7 3 Multiply Simplify the answer. 8 35
-
A school district _________ require the posting in each classroom of a copy of the Ten Commandments that has been obtained via private contributions and is expressly labeled as nonreligious material....
-
It is early April 2024 and you, CPA, work in a mid-sized accounting firm in Kelowna, British Columbia. While you normally work on audits, you have requested to participate in the personal tax pool...
-
Estimate the mean of the weights (in pounds) of socks ordered by customers in the last two hours given in the following grouped frequency table. Round the final answer to one decimal place. Value...
-
Will the prediction interval always be wider than the estimation interval for the same value of the independent variable? Briefly explain.
-
At January 30, 2010, total assets were $33,652 and total stockholders' equity was $5,641. a. Calculate Dell, Inc.'s, working capital, current ratio, and acid-test ratio at February 3, 2012, and...
-
Minott Jewelers, Ltd., purchased store fixtures, display cases, and a maximum-security commercial safe for a lump-sum price of $14,000 from a bankrupt competitor. Appraised values were as follows:...
-
In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead,...
-
Explain why and how bond discount and bond premium affect (a) the balance sheet and (b) the income statement of the investor.
-
What are convertible bonds? What are the primary reasons for their use?
-
Under GAAP, when is it appropriate to use the (a) straight-line interest method and (b) effective interest method of amortization for bond discount or premium?
Study smarter with the SolutionInn App