The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product.1. How many units of product A130, B324, and C587 should Wechsler produce?2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac? 11-42 Product mix, constrained resource. Wechsler Company produces three products: A130,B324, and C587. All three products use the same direct material, Brac. Unit data for the threeproducts are:ProductA130B324C587Selling price$252$168$210Variable costs$ 72$ 84$ 27$ 45$ 81Direct materialsLabor and other costs$120Quantity of Brac per unit8 lb.5 lb.3 lb.

Bottleneck item= Brac quantity 1 Contribution per unit and Ranking of Porduct…

The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product. 1. How many units of product A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?

The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product. 1. How many units of product A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...

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Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?
Product mix, constrained resource. Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data for the three products are:
Alto Company currently produces component TH1 for one of its products. The current cost per unit to manufacture its required 400,000 units of TH1 follows. Direct materials and direct labor are 100% variable. Overhead is 75% fixed. An outside supplier has offered to supply the 400,000 units of TH1 for $4 per unit. Required 1. Determine whether management should make or buy the TH1. Analysis Component 2. What factors besides cost must management consider when deciding whether to make or buy TH1? Direct materials . $1.20 Direct labor . 1.50 Overhead . 6.00 Total cost per unit . $8.70
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