The objectivemanufactured.A manufacturer wishes to produce two commodities x and y. The number of units ofmaterial, labor and equipment needed to produce one unit of each commodity isShown below together with the available number of units of each of the items.availableno. of units480ymaterial4labor4240equipment4200profit/unitP120P100Find the number of units to produce in order to maximize the profit.429

A manufacturer is producing a commodity X and Y with a profit per unit 120 and 100 respectively.…

Answered: manufactured. material, labor and…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 13MCQ

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When materials costs differ significantly among products in a value stream, the valuestream product cost is calculated by which of the following?a. Unit Materials Cost + Value-Stream Costs/Units Shippedb. Unit Materials Cost + Value-Stream Conversion Costs/Units Shippedc. Value-Stream Costs/Units Producedd. Value-Stream Costs/Units Shipped
Using a physical measurement method, what amount of joint processing cost is allocated to Product B? c. P1,311.00 d. P3,495.00 b. P2,447.00 a. P1,748.00 Using the sales value at split-off point method, what of amount of joint processing cost is allocated to Product A? c. P1,108.00 b. P2,276.00 a. P4,433.00 d. P1,182.00 Using net realizable value after split-off point method, what amount of joint processing cost is allocated to Product C? d. P4,263.00 c. P2,375.00 b. P1,550.00 a. P1,017.00
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
Lean manufacturing uses value streams to produce a family of products that require the same manufacturing sequence. Value-stream costing is an approach often used to determine the unit product costs in a lean manufacturing environment. Which of the following best describes how unit costs are calculated using value-stream costing? a. Value stream costs divided by units shipped b. Value stream costs divided by units produced c. (Total prime costs + overhead costs assigned to the value stream using a plantwide rate) divided by units produced d. Activity-based costing assignments within the value stream
With nonuniform inputs, the cost of EWIP is calculated by a. adding the materials cost to the conversion cost. b. subtracting the cost of goods transferred out from the total cost of materials. c. multiplying the unit cost in each input category by the equivalent units of each input found in EWIP. d. multiplying the total unit cost by the units in EWIP. e. None of these.
For the theory of constraints, which of the following determines the production rate of the plant? a. Local efficiency measures that encourage production of excess inventory just in case demand is greater than expected b. The economic order quantity c. Market demand d. The drummer constraints production rate
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
When operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint cost
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only o department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)
Which of the following may form the basis for the price a company (working at full capacity) should charge for a one-off order? (a) direct labor plus materials costs (b) opportunity costs plus marginal costs (c) variable costs (d) direct and indirect costs

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