2. Rue Company makes several types of graphic tablets. One factory specializes in two types,the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for anumber of years, while Sketcher is relatively new and struggling to gain acceptance. Dataon the two machines follow:DOODLERP2010 hoursSKETCHERP4520 hoursMaterials costAssembly timeExpected volume for coming year10,000500Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 forthe coming year.REQUIRED:1.Determine the total number of labor hours the company will work in the comingyear.2.Determine the overhead rate per labor hour.3.Determine the total cost of each tablet.The Doodler is now selling at P320, while the Sketcher now fetches P950.Determine the profit margin for each tablet.4.

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2. Rue Company makes several types of graphic tablets. One factory specializes in two types, the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for a number of years, while Sketcher is relatively new and struggling to gain acceptance. Data on the two machines follow: DOODLER P20 10 hours 10,000 SKETCHER P45 Materials cost Assembly time Expected volume for coming year 20 hours 500 Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 for the coming year. REQUIRED: 1. Determine the total number of labor hours the company will work in the coming year. 2. Determine the overhead rate per labor hour. 3. Determine the total cost of each tablet. 4. The Doodler is now selling at P320, while the Sketcher now fetches P950. Determine the profit margin for each tablet.

2. Rue Company makes several types of graphic tablets. One factory specializes in two types, the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for a number of years, while Sketcher is relatively new and struggling to gain acceptance. Data on the two machines follow: DOODLER P20 10 hours 10,000 SKETCHER P45 Materials cost Assembly time Expected volume for coming year 20 hours 500 Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 for the coming year. REQUIRED: 1. Determine the total number of labor hours the company will work in the coming year. 2. Determine the overhead rate per labor hour. 3. Determine the total cost of each tablet. 4. The Doodler is now selling at P320, while the Sketcher now fetches P950. Determine the profit margin for each tablet.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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