Tread Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such...
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Tread Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Tread Light could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the constraint? Tread Light's constraint is Data table Sales Price Costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead* Variable Operating Expenses Total Costs Operating Income *allocated on the basis of machine hours $ $ GA Per Unit Deluxe 980 $ 310 80 240 102 111 843 137 $ Regular 580 90 180 80 34 63 447 133 Requirements I 1. What is the constraint? 2. Which model should Tread Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Tread Light should produce both models, compute the mix that will maximize operating income. x Tread Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Tread Light could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the constraint? Tread Light's constraint is Data table Sales Price Costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead* Variable Operating Expenses Total Costs Operating Income *allocated on the basis of machine hours $ $ GA Per Unit Deluxe 980 $ 310 80 240 102 111 843 137 $ Regular 580 90 180 80 34 63 447 133 Requirements I 1. What is the constraint? 2. Which model should Tread Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Tread Light should produce both models, compute the mix that will maximize operating income. x
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Solution 1 What is the constraint Tread Lights constraint is Machine hours Here in the question says ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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