Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currentlyfacing a labor shortage; only 4,800 hours are available this month. The selling prices, costs, labor requirements, and demand for thethree products are as follows:Sales priceVariable cost per unitDirect labor hours perunitDemand (units)Large Mouth (Product A)$ 70.00$ 53.002.11,200Small Mouth(Product B)$ 38.00$ 19.00Required A Required B Required CComplete this question by entering your answers in the tabs below.3.31,700Required:a. In what order should Hydroflask prioritize production of the products?b. How many of each product should be produced during the labor shortage to maximize profit?c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources?In what order should Hanson prioritize production of the products?Required AMini Mouth(Product C)$ 52.00$48.00Required B >1.71,900

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Hydroflask water bottles produces three…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage; only 3,300 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price: Variable cost per unit. Direct labor hours per unit Demand (units) Large Mouth (Product A) $ 62.00 $43.00 1.8 1,600 Small Mouth (Product B) $ 39.00 $ 20.00 2,600 Complete this question by entering your answers in the tabs below. Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? Required A Required B Required C In what order should Hanson prioritize production of the products? $ 50.00 $ 40.00 1.7 1,100
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down; only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Product A Product B Product C Sales price $ 10.25 $ 9.00 $ 2.50 Variable cost per unit $5.00 $ 4.00 $ 2.00 Machine hours per unit 1.75 1.00 0.25 Required: What is the contribution margin per unit for each product? What is the contribution margin per machine hour for each product? Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down; only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Sales price Variable cost per unit Machine hours per unit Required: Product A $ 10.25 Product B $ 9.00 Product C $ 5.00 1.75 $ 4.00 1.00 $ 2.50 $ 2.00 0.25 a. What is the contribution margin per unit for each product? b. What is the contribution margin per machine hour for each product? c. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the contribution margin per direct labor hour for each product? Note: Round your intermediate calculations to 2 decimal places. Contribution Margin per Machine Hour Product A Product B Product C
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $199.35 $311.50 $262.70 Direct labor costs 37.10 107.10 43.40 Other variable costs 96.00 82.00 148.00 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. Determine the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal places, e.g. 52.75.) Product D Product E Product F Contribution margin per direct labor hour $ $ $
Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 $ 6.00 0.75 0.25 $ 6.00 1.00 Demand (units) 700 610 How many of each product should be produced while the machine is down to maximize profit? 800
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $199.35 $311.50 $262.70 Direct labor costs 37.10 107.10 43.40 Other variable costs 96.00 82.00 148.00 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. (a) Determine the number of direct labor hours per unit. (Round answers to 2 decimal places, e.g. 52.75.) Direct labor Product D hours per unit Product E hours per unit Product F hours per unit
Pasadena Corp produces three products, and currently has a shortage of machine hours since one of its two machines is down-only 28 300 hours are available this month. The selling price, costs, and labor requirements of the three products are as followS: Product B $14.00 $ 6.00 2.00 Prodoct C Balling price Variable per mit Kachine hours par mit Frodact A $5.25 $5.00 $4.25 $3.00 1.25 0.25 4 What is the contribution margin per unit for each product? (Round your answers to 2 decimal places.) Centre PraducA Producd B Praducd C & What is the contribution margin per machine hour for each product? (Round your answers to 2 decimal places.)
Blossom Inc. produces and sells three products. Unit data concerning each product is shown below. Selling price Direct labor costs Other variable costs (a) D Product D $201.80 Product E 33.80 Your answer is correct. Product F 103 Product E $304.30 The company has 1,900 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $13. 100.10 Determine the number of direct labor hours per unit. (Round answers to 2 decimal places, e.g. 52.75.) 81 Direct labor 2.6 7.7 F 3.1 $252.40 40.30 147 hours per unit hours per unit hours per unit

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