Brick lane Co. produces two products: Camden and Chelsea. Camden Chelsea Direct Materials 2 3 Direct labor (2 per hour) 8 2 Variable overhead 1 1 11 6 The sale price per unit is $ 13 per Camden and 11 $ per Chelsea. In August 2022, the available direct labor is limited to 7,000 hours. Salas demand in July is expected to be 4,000 for Camden and 6,000 united for Chelsea. Required: Determine the profit product mix for Brick lance Co. assuming that Monthly fixed costs are $15,000 and that opening inventory of finished goods and work in progress are nil.
Brick lane Co. produces two products: Camden and Chelsea. Camden Chelsea Direct Materials 2 3 Direct labor (2 per hour) 8 2 Variable overhead 1 1 11 6 The sale price per unit is $ 13 per Camden and 11 $ per Chelsea. In August 2022, the available direct labor is limited to 7,000 hours. Salas demand in July is expected to be 4,000 for Camden and 6,000 united for Chelsea. Required: Determine the profit product mix for Brick lance Co. assuming that Monthly fixed costs are $15,000 and that opening inventory of finished goods and work in progress are nil.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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Brick lane Co. produces two products: Camden and Chelsea.
|
Camden |
Chelsea |
|
|
Direct Materials |
2 |
3 |
|
Direct labor (2 per hour) |
8 |
2 |
|
Variable overhead |
1 |
1 |
|
11 |
6 |
The sale price per unit is $ 13 per Camden and 11 $ per Chelsea. In August 2022, the available direct labor is limited to 7,000 hours. Salas demand in July is expected to be 4,000 for Camden and 6,000 united for Chelsea.
Required: Determine the profit product mix for Brick lance Co. assuming that Monthly fixed costs are $15,000 and that opening inventory of finished goods and work in progress are nil.
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