Blue Company makes three products in a single facility. Data concerning these products follow: Products A B Selling price per unit $67.90 $57.70 $43.90 Direct materials $12.10 $10.30 $8.60 Direct labour $14.10 $8.00 $6.80 Variable manufacturing overhead Variable selling cost per unit $2.60 $2.20 $1.80 $2.50 $2.20 $2.50 Mixing minutes per unit 2.70 3.30 4.70 Direct materials in KG per unit 7.52 13.25 4.80 Monthly demand in units 1,000 3,000 3,000 The mixing machines and direct materials used are potentially constraints in the production facility. A total of 25,000 minutes are available per month on these machines. Direct labour is a variable cost in this company. Total direct materials available are 40,000 kg. Required: 1.) In what order should Blue Company produce its products if mixing minutes per unit are the only production constraint? 2) in what order should Blue Company produce its products if direct materials used are the only production constraint?

Blue Company makes three products in a single facility. Data concerning these products follow: Products A B Selling price per unit $67.90 $57.70 $43.90 Direct materials $12.10 $10.30 $8.60 Direct labour $14.10 $8.00 $6.80 Variable manufacturing overhead Variable selling cost per unit $2.60 $2.20 $1.80 $2.50 $2.20 $2.50 Mixing minutes per unit 2.70 3.30 4.70 Direct materials in KG per unit 7.52 13.25 4.80 Monthly demand in units 1,000 3,000 3,000 The mixing machines and direct materials used are potentially constraints in the production facility. A total of 25,000 minutes are available per month on these machines. Direct labour is a variable cost in this company. Total direct materials available are 40,000 kg. Required: 1.) In what order should Blue Company produce its products if mixing minutes per unit are the only production constraint? 2) in what order should Blue Company produce its products if direct materials used are the only production constraint?

Name: Blue Company makes three products in a single facility. Data concerni
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Blue Company makes three products in a single facility. Data concerning these products follow:ProductsSelling price per unit$67.90$57.70$43.90Direct materials$12.10$10.30$8.60Direct labour$14.10$8.00$6.80Variable manufacturing overhead$2.60$2.20$1.8

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9PB: Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to...

See similar textbooks

Similar questions

Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
Rex Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: What is the activity rate for each cost pool?
Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?
Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?
Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 20Y2 is as follows: The estimated direct labor rate is 20 per direct labor hour. Beginning and ending inventories are negligible and are, thus, assumed to be zero. The budgeted factory overhead for Isaac Engines is 235,200. a.Determine the plantwide factory overhead rate. b.Determine the factory overhead and direct labor cost per unit for each product. c.Use the information provided to construct a budgeted gross profit report by product line for the year ended December 31, 20Y2. Include the gross profit as a percent of sales in the last line of your report, rounded to one decimal place. d.What does the report in (c) indicate to you?
Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows: During the year, Petrillo had the following activity related to valve production: a. Production of valves totaled 20,600 units. b. A total of 135,400 pounds of direct materials was purchased at 5.36 per pound. c. There were 10,000 pounds of direct materials in beginning inventory (carried at 5.40 per pound). There was no ending inventory. d. The company used 36,500 direct labor hours at a total cost of 656,270. e. Actual fixed overhead totaled 110,000. f. Actual variable overhead totaled 168,000. Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year. Standard overhead rates are computed based on normal activity measured in standard direct labor hours. Required: 1. Compute the direct materials price and usage variances. 2. Compute the direct labor rate and efficiency variances. 3. Compute overhead variances using a two-variance analysis. 4. Compute overhead variances using a four-variance analysis. 5. Assume that the purchasing agent for the valve plant purchased a lower-quality direct material from a new supplier. Would you recommend that the company continue to use this cheaper direct material? If so, what standards would likely need revision to reflect this decision? Assume that the end products quality is not significantly affected. 6. Prepare all possible journal entries (assuming a four-variance analysis of overhead variances).
Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.