Answered: Day Scan Night scan… | bartleby

Day Scan Night scan Omni scan GH¢ GH¢ GH¢ Material 70 110 155 Manufacturing labour 40 55 70 Installation labour 24 32 44 Variable overheads 16 20

Pkg Acc Infor Systems MS VISIO CD

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter17: Acquiring And Implementing Accounting Information Systems

Section: Chapter Questions

Problem 1SP

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QUESTION 2

Trinity product Limited makes and sells three types of electronic security systems for which the following information is available

Standard cost and selling price per unit

Day Scan Night scan Omni scan

GH¢ GH¢ GH¢

Material 70 110 155

Manufacturing labour 40 55 70

Installation labour 24 32 44

Variable overheads 16 20 28

Selling price 250 320 460

Fixed cost for the period are GH¢450,000 and installation labour, which is highly skilled is available for 25,000 hours only in a period and is paid GH¢8 per hour. Both manufacturing and installation labour are variable cost.

The maximum demand for the period is:

Day scan 2,000units; Night scan 3,000units; Omni scan 1,800 units.

Required

Calculate the shortfall (if any) in hours of installation labour.
Determine the best production plan assuming the company wishes to maximize profit.
Calculate the maximum profit that could be achieved from the plan in part (2) above.
Having carried out an investigation of the availability of installation labour, the firm thinks that by offering GHS 12 per hour, additional installation would become available and thus overcome the labour shortage. Based on the result obtained above, you are required to advice the firm whether or not to implement this proposal.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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