Week 7 Assignment - Excel Build A Spreadsheet Using the Excel spreadsheet template provided, build a spreadsheet by preparing the following statements for: Kitchen Magician, Ind. Production Decisions; Limited Capacity Chapter 14 (Textbook) (LO 14-5,14-6) Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products Blender $ 21 15 Electric Mixer Direct material Direct labor Manufacturing overhead $44 per machine hour Cost if purchased from an outside supplier Annual demand (units) 35 28 63 23,000 108 34,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $33 Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers Required 1. If 56,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased? DATA INPUT Overhead cost per machine hour Fixed manufacturing overhead per machine hou Machine hours limit $44 $33 56,000 Blender Electric Mixer 21 $ 15 $ 44 $ 63 $ 35 28 Direct Material Direct Labor Manufacturing overhead Cost if purchased from outside supplier Annual Demand (units 108 34,000 23,000 Production Decisions; Limited Capacity 1. Unit cost if purchased from outside supplier Incremental cost if manufactured Blender Electric Mixer Direct Material Direct Labor Variable overhead $44 - $33 per hour fixed $88 - (2) ($33 per hour fixed Total Unit cost savings if manufactured Machine hours equired per unit Cost savings per machine hour if manufactured $16/1 hour $23 /2 hours Therefore each machine hour devoted to the production of machine hour devoted to saves the company more than a production Machine hours available Machine hours needed to manufacture 23,000 blenders Remaining machine hours Number of mixers to be produced Conclusion: Manufacture Manufacture Purchase blenders mixers mixers