Determining the Optimal Product Mix with One Constrained Resource   Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $11 and $22, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,200 hours of machine time per year. Each Swoop sweatshirt requires 12 minutes of machine time, and each Rufus sweatshirt requires 27 minutes of machine time. Assume that there are no other constraints. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.     Open spreadsheet   Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent.     Contribution Margin     Swoop $fill in the blank 2     Rufus $fill in the blank 3   2. What is the optimal mix of sweatshirts? Do not round intermediate calculations. Round your answers to the nearest whole number. If an amount is zero, enter "0".     Optimal Mix     Swoop fill in the blank 4 units     Rufus fill in the blank 5 units   3. What is the total contribution margin earned for the optimal mix? Do not round intermediate calculations. Round your answer to the nearest dollar.   $fill in the blank 6

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Determining the Optimal Product Mix with One Constrained Resource

     

    Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $11 and $22, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,200 hours of machine time per year. Each Swoop sweatshirt requires 12 minutes of machine time, and each Rufus sweatshirt requires 27 minutes of machine time.

    Assume that there are no other constraints.

    This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

     

     
    Open spreadsheet

     

    Required:

    1. What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent.
        Contribution Margin  
      Swoop $fill in the blank 2  
      Rufus $fill in the blank 3  
    2. What is the optimal mix of sweatshirts? Do not round intermediate calculations. Round your answers to the nearest whole number. If an amount is zero, enter "0".
        Optimal Mix  
      Swoop fill in the blank 4 units  
      Rufus fill in the blank 5 units  
    3. What is the total contribution margin earned for the optimal mix? Do not round intermediate calculations. Round your answer to the nearest dollar.
      $fill in the blank 6
 
HW4
b Predetermined X
** CengageNOwy X
Excel Online St X
G Calculating the x
accounting cha xG Appendix 4B) A X
Solved: At The X
G how do you scr X
O about:blank
Excel
template
Saved
File
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Insert
Formulas
Data
Review
View
Help
Tell me what
you want to do
Comments
X Cut
Arial
10
A A
ab wrap Text
General
> AutoSum v
LG Copy
$ - % 9
Paste
Conditional
Format
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Format Painter
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С18
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Predetermined Departmental Overhead Rates, Applying Overhead to Production
Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead
is applied on the basis of direct labor hours.
3
4
DATA
Cutting
Department
$245,800
31,200
155,800
Sewing
Department
$353,000
101,100
Estimated
6.
Total
$598,800
132,300
155,800
7
Overhead
8.
Direct labor hours
9.
Machine hours
Cutting
Department
$20,540
Sewing
Department
$35,850
Actual data for June
10
Total
11
Overhead
$56,390
11,540
13,660
12 Direct labor hours
2,800
8,740
13 Machine hours
13,660
14
Using formulas and cell references, perform the required analysis, and input your answers into the green cells in B and D columns. Select the corresponding
choice in the dropdowns in cells C20 and E20. Transfer the numeric results for the green entry cells (B18:B20, D18:D20) and the selected choices (C20 and
15 E20) into the appropriate fields in CNOWV2 for grading.
16
17 Required:
1. Predetermined overhead rates
Cutting Department
Sewing Department
Formulas
18
2. Overhead applied to production
19
for the month of June
20
3. Overhead variance
21
22
23
24
25
A Data
+
Calculation Mode: Automatic
Workbook Statistics
Help Improve Office
100% +
>
Transcribed Image Text:HW4 b Predetermined X ** CengageNOwy X Excel Online St X G Calculating the x accounting cha xG Appendix 4B) A X Solved: At The X G how do you scr X O about:blank Excel template Saved File Home Insert Formulas Data Review View Help Tell me what you want to do Comments X Cut Arial 10 A A ab wrap Text General > AutoSum v LG Copy $ - % 9 Paste Conditional Format Cell Insert Delete Format Sort & Find & BIUD ab .00 00 20 Merge & Center Clear Format Painter Formatting v as Table v Styles v Filter v Select v Undo Clipboard Font Alignment Number Tables Cells Editing С18 В E F G H I K Predetermined Departmental Overhead Rates, Applying Overhead to Production Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labor hours. 3 4 DATA Cutting Department $245,800 31,200 155,800 Sewing Department $353,000 101,100 Estimated 6. Total $598,800 132,300 155,800 7 Overhead 8. Direct labor hours 9. Machine hours Cutting Department $20,540 Sewing Department $35,850 Actual data for June 10 Total 11 Overhead $56,390 11,540 13,660 12 Direct labor hours 2,800 8,740 13 Machine hours 13,660 14 Using formulas and cell references, perform the required analysis, and input your answers into the green cells in B and D columns. Select the corresponding choice in the dropdowns in cells C20 and E20. Transfer the numeric results for the green entry cells (B18:B20, D18:D20) and the selected choices (C20 and 15 E20) into the appropriate fields in CNOWV2 for grading. 16 17 Required: 1. Predetermined overhead rates Cutting Department Sewing Department Formulas 18 2. Overhead applied to production 19 for the month of June 20 3. Overhead variance 21 22 23 24 25 A Data + Calculation Mode: Automatic Workbook Statistics Help Improve Office 100% + >
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