Wildflower Inc. sells three products-J, K and L. Here are data regardingthe three products:Annual customer demand, in unitsSelling price, per unitVariable costs, per unitDirect labor hours to produce one unit$85 per hourO $90 per hourO $95 per hourO $105 per hourProduct J525 units$660$2804 hoursNone of the aboveProduct K450 units$940$5155 hoursProduct L600 unitsWildflower's current capacity is 3,000 direct labor hours per year. Howmuch should Wildflower be willing to pay per direct labor hour to acquireadditional capacity?$370$1602 hours

Direct labor hour refers to the amount of time that a worker spends directly working on a specific…

Answered: Wildflower Inc. sells three products-J,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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Similar questions

Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Cube Industries sells three products-P, Q and R. Here are data regarding these three products: Product Q Annual customer demand, in units Selling price, per unil Variable costs, per unit Direct labor hours to produce one unit O $17 per hour O $18 per hour O $19 per hour O $21 per hour Product P O None of the above 525 units $660 $280 20 hours 450 units $940 $515 25 hours Product R 600 units Cube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing to pay per direct labor hour to acquire additional capacity? $370 $160 10 hours
Here are data regarding the three products that Acme Company makes and sells: Product P Product Q Product R Annual customer demand, in units Selling price, per unit 1,200 units 1,500 units 1,000 units $80 $83 $45 Variable operating costs, per unit Machine time to produce one unit $35 $26 $20 2.5 hours 3.0 hours 1.25 hours Acme's current capacity is 4,250 machine hours per year. What is the maximum amount that Acme should be willing to pay per machine hour to acquire an additional 100 hours of capacity? ○ $18 $20 ○ $23 ○ $19
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880…
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 5 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $37.10 per DLH. The direct materials cost per unit is $203.60 for Product W2 and $140.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 218,576 2,000 2,000 4,000 Production orders orders 18,538 400 380 780 Order size MHs 202,886 3,880 3,680 7,560 $ 440,000 Which of the…
Melanio Company produces a merchandise that has the following data: Unit Sales Price P80 per unit P48 per unit P640,000 per annum 25,000 units Unit Variable Costs Total Fixed Costs Units sold during the current year
Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).
Company produces and sells four products: A, B, C, and D. The following data relate to its four products: A B C D Daily demand in units 90 50 80 70 Selling price per unit $80 $110 $120 $100 Direct material per unit $15 $35 $30 $25 Direct labor per unit $18 $25 $20 $30 Fixed cost per unit $20 $10 $18 $28 Other variable cost per unit $5 $5 $5 $5 Labor time in minutes per unit 10 20 15 12 There are total of 2,700 minutes available per day. University Company Uses the traditional method for scarce resource maximization. Problem 5.3 How many units of product D should be produced each day?

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