A company produces the following three products in a single manufacturing plant.ProductOneTwoThreeSelling price per unitDirect materials$94.50 $79.60 $112.60$41.20 $44.40 $ 67.7e$29.70 $14.20 $ 16.70$ 5.70 $ 4.80 $ 7.80$ 7.20 $ 3.40 $ 4.80Direct laborVariable manufacturing overheadVariable selling cost per unitMixing minutes per unitMonthly demand in units12.802.502.503,0001,0002,000The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on thesemachines.Direct labor is a variable cost in this company.Required:a. How many minutes of mixing machine time would be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?c. If the company has made the best use of the existing mixing machine capacity, what is the maximum amount they should be willingto pay for one additional hour of mixing machine time?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CHow much of each product should be produced to maximize net operating income? (Round final answers to the nearest wholeunit.)Product OneProduct TwoProduct ThreeOptimal production< Required ARequired C > A company produces the following three products in a single manufacturing plant.ProductOneTwoThreeSelling price per unitDirect materials$94.50 $79.60 $112.60$41.20 $44.40 $ 67.7e$29.70 $14.20 $ 16.7e$ 5.70 $ 4.80 $ 7.8e$ 7.20 $ 3.40 $Direct laborVariable manufacturing overheadVariable selling cost per unitMixing minutes per unitMonthly demand in units4.8012.802.502.503,0001,0002,000The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on thesemachines.Direct labor is a variable cost in this company.Required:a. How many minutes of mixing machine time would be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?c. If the company has made the best use of the existing mixing machine capacity, what is the maximum amount they should be willingto pay for one additional hour of mixing machine time?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CHow many minutes of mixing machine time would be required to satisfy demand for all three products?Total minutes required< Required ARequired B >

Name: A company produces the following three products in a single manufactu
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Description: A company produces the following three products in a single manufacturing plant.ProductOneTwoThreeSelling price per unitDirect materials$94.50 $79.60 $112.60$41.20 $44.40 $ 67.7e$29.70 $14.20 $ 16.70$ 5.70 $ 4.80 $ 7.80$ 7.20 $ 3.40 $ 4.80Direct lab

Business

Accounting

company produces the following three products in a single manufacturing plant. Product One Two Three Selling price per unit $94.50 $79.60 $112.60 $41.20 $44.40 $ 67.7e $29.70 $14.20 $ 16.7e $ 5.70 $ 4.80 $ $ 7.20 $ 3.40 $ 2.50 Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units 7.80 4.80 12.80 2.50 3,000 1,000 2,000

company produces the following three products in a single manufacturing plant. Product One Two Three Selling price per unit $94.50 $79.60 $112.60 $41.20 $44.40 $ 67.7e $29.70 $14.20 $ 16.7e $ 5.70 $ 4.80 $ $ 7.20 $ 3.40 $ 2.50 Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units 7.80 4.80 12.80 2.50 3,000 1,000 2,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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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?
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