The following are the selling price, variable costs, and contribution margin for one unit of each...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A. B, and C: Product B A $100.00 Selling price Variable costs: $100.00 $120.00 63.00 51.00 Direct materials Direct labour 84.00. 12.50 20.00 10.00 2.50 4.00 2.00 Variable manufacturing overhead Total variable cost. 78.00 96.00 Contribution margin. $22.00 22% 75.00 $ 25.00 25% $24.00 20% Contribution margin ratio Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $5 per hour, and only 3,820 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) B с Contribution margin per labour hour 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Product C Product B Product A 3. By paying overtime wages, more than 3,820 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum amount per hour The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A. B, and C: Product B A $100.00 Selling price Variable costs: $100.00 $120.00 63.00 51.00 Direct materials Direct labour 84.00. 12.50 20.00 10.00 2.50 4.00 2.00 Variable manufacturing overhead Total variable cost. 78.00 96.00 Contribution margin. $22.00 22% 75.00 $ 25.00 25% $24.00 20% Contribution margin ratio Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $5 per hour, and only 3,820 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) B с Contribution margin per labour hour 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Product C Product B Product A 3. By paying overtime wages, more than 3,820 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum amount per hour
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these accounting questions
-
Selling price Variable costs: Direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin Contribution margin ratio Contribution margin per labour hour O...
-
A company that manufactures three products a b and c requires two raw materials - labor and material - need to determine the optimal production that maximizes its total profit. A linear program was...
-
Dutchik Company had no jobs in progress at the beginning of June and no beginning inventories. It started only two jobs during the month Job A and Job B. Job A was completed and sold by the end of...
-
Which of the following is true regarding the cell cycle (Campbell 12.3)? Cells in mitosis will have low levels of the protein cyclin. Cytokinesis occurs before mitosis Mitosis occurs in the S phase...
-
The figure shows a weldment just like that for Probs. 917 to 920 except there are four welds instead of two. Find the safe bending force F if the allowable shear stress in the welds isÏallow....
-
In China, factory people often work long hours with low pay. Some factories lack heating or air-conditioning, and employees may work with hazardous materials. Workers may be fired if they complain....
-
Titanium Metals Corporation (TIMET) is one of the worlds leading producers of titanium products. In November 2012, it was announced the company was being purchased by Precision Castparts, a...
-
Prices of zero-coupon bonds reveal the following pattern of forward rates: Year Forward Rate 1 ............5% 2 ............7 3 ............8 In addition to the zero-coupon bond, investors also may...
-
Consider the case of Kuhn Co . Kuhn Co . is considering a new project that will require an initial investment of $ 4 million. It has a target capital structure of 4 5 % debt, 4 % preferred stock, and...
-
Construct a new version of Table 4.7, assuming that the concatenator division grows at 20%, 12%, and 6%, instead of 12%, 9%, and 6%. You will get negative early free cash flows. a. Recalculate the PV...
-
In the following probability distribution, the random variable x represents the number of DVDs rented from a Redbox by a randomly selected customer. X P(x) 0 0.04 1 0.64 2 3 0.06 4 0.05 You should...
-
Why do we feel more energy with sport shoes? Some sport shoes have spring-loaded heels. When a guy with 80 kg put all his weight on the two feet, the spring at each foot compresses by 1.5 mm. Find...
-
=== Let r(t) (2,1 t, 4t). Calculate the derivative of r(t) a(t) at t = 8, assuming that a(8)=(-3, -9, 6) and a'(8)=(-2,-2,3) d. dt (t) - a(t)|t-s=
-
1. We call a dummy variable, any random variable d that can only take values 0 or 1. In this exercise you will be asked to prove some results about regressions with dummy variables. Consider the...
-
Dahlia Corporation has a current accounts receivable balance of $447,016. Credit sales for the year just ended were $4,950,605. a. What is the receivables turnover? Note: Do not round Intermediate...
-
Find the length of the curve (t)=(9,,) for-3
-
Your crystal ball predicts the following returns on stock A, stock B, and the market portfolio: Stock A 8.6% Stock B Period 1 12.8% Market 10.0% 2 11.0 17.0 13.0 3 4.6 5.8 5.0 4 -2.6 -6.8 -4.0 5 10.2...
-
All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt
-
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The divisions monthly costs are shown in the schedule below:...
-
Norris Property Management has been offered a six-year contract to provide grounds maintenance for various condominium corporations. To accept the contract, the company would have to purchase several...
-
Refer to the data in Exercise 38 for Brentline Hospital. In exercise Required: 1. Using Microsoft Excel, prepare a scattergram using the data from Exercise 38. Plot cost on the vertical axis and...
-
Burger King announced it would phase abused chicken out of its supply chain by 2024. The new standards include the requiring of higher-welfare strains of chickens, a reduction in the stocking density...
-
Ilectronics Inc. makes high-quality speakers for a variety of applications. Electronics Inc. is a St. Louis-based company but has significant manufacturing operations in China. When manufacturing...
-
Sony ('orp). launched its PlayStation 4 in late 2013. It was introduced at a price point of \(\$ 399\). At the time of introduction, a technology firm performed a tear-down of the PlayStation and...
Study smarter with the SolutionInn App