Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use ac Monthly overhead $18,000 $29,000 Activity Cost driver Setup Mixing Quality testing Number of setups Mixing hours Number of tests $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of th Daily vitamins 48 Prenatal vita mins 42 Number of setups Mixing hours Number of tests 1,700 220 1,900 280 $7.00 Sales price per unit Direct materials cost per unit $7.00 $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (u. Daily vitamins Prenatal vita mins Setup costs Mixing costs Quality testing costs TOTAL overhead cost Overhead cost per unit 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to Daily vitamins Prenatal vita mins TOTAL manfucaturing cost per unit 3. Calculate the production gross margin per unit for each of Company Healthy's products (use for Daily vitamins 4 -5 Prenatal vitamins 36 Gross margin per unit 37 38 39
Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use ac Monthly overhead $18,000 $29,000 Activity Cost driver Setup Mixing Quality testing Number of setups Mixing hours Number of tests $25,100 Company Healthy compiled the following information about the chosen cost drivers and each of th Daily vitamins 48 Prenatal vita mins 42 Number of setups Mixing hours Number of tests 1,700 220 1,900 280 $7.00 Sales price per unit Direct materials cost per unit $7.00 $2.00 $2.50 Direct labor cost per unit $0.70 $1.10 Units of production per month 70,000 40,000 1. Assuming an ABC system, assign overhead costs to each product based on activity demands (u. Daily vitamins Prenatal vita mins Setup costs Mixing costs Quality testing costs TOTAL overhead cost Overhead cost per unit 2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to Daily vitamins Prenatal vita mins TOTAL manfucaturing cost per unit 3. Calculate the production gross margin per unit for each of Company Healthy's products (use for Daily vitamins 4 -5 Prenatal vitamins 36 Gross margin per unit 37 38 39
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter12: Integer Linear Optimization_models
Section: Chapter Questions
Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...
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fill in the yellow highlighted cells based on the information provided above
Transcribed Image Text:X V fx
E
LA
Company Healthy produces two main products: Daily vitamins and prenatal vitamins. They use acti
Cost driver
Monthly overhead
Activity
Setup
Mixing
Quality testing
Number of setups
$18,000
Mixing hours
Number of tests
$29,000
$25,100
Company Healthy compiled the following information about the chosen cost drivers and each of thei
Daily vitamins
Prenatal vitamins
42
Number of setups
Mixing hours
Number of tests
48
1,700
1,900
220
280
$7.00
$7.00
Sales price per unit
Direct materials cost per unit
$2.00
$2.50
Direct labor cost per unit
$0.70
$1.10
Units of production per month
70,000
40,000
1. Assuming an ABC system, assign overhead costs to each product based on activity demands (use
Daily vitamins
Prenatal vita mins
If
Setup costs
Mixing costs
Quality testing costs
TOTAL overhead cost
7
28
Overhead cost per unit
29
30
2. Calculate the production cost per unit for each of Company Healthy's products (use formulas to c
Daily vitamins
31
Prenatal vita mins
32
TOTAL manfucaturing cost per unit
33
3. Calculate the production gross margin per unit for each of Company Healthy's products (use form
Daily vitamins
34
35
Prenatal vitamins
36
Gross margin per unit
37
38
39
40
41
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