A company will manufacture a total of 10,000 units of its products at plants A and...
A company will manufacture a total of 10,000 units of its products at plants A and B. Available data are as follows:
| Plant A | Plant B | |
| Variable cost per item | $6 | $6.50 |
| Fixed cost | $40,000 | $35,000 |
The company decided to spend no more than $137,500 for total costs. What is the maximum number of units that must be produced at Plant B?
Homework Answers
Total units = 10,000
Let, Units produced for Plant A = a
then, Units produced for plant B = 10000-a
Cost for plant A = $40,000 + $6*a
Cost for plant B = $35,000 + $6.50*(10,000-a)
40,000+6a+35,000+65000-6.5a = 137500
140000-0.5a = 137500
a = 5,000 units
Maximum number of units that must be produced at Plant B = 10000-5000 = 5000 units
Add Answer to:
A company will manufacture a total of 10,000 units of its
products at plants A and...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products....
Innova uses 1,000 units of the component IMC2 every month to
manufacture one of its products. The unit costs incurred to
manufacture the component are as follows.
Direct materials
$ 65.00
Direct labor
45.00
Overhead
126.50
Total
$236.50
Overhead costs include variable material handling costs of $6.50,
which are applied to products on the basis of direct material
costs. The remainder of the overhead costs are applied on the basis
of direct labor dollars and consist of 60% variable costs...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products....
Innova uses 1,000 units of the component IMC2 every month to
manufacture one of its products. The unit costs incurred to
manufacture the component are as follows.
Direct materials
$ 65.00
Direct labor
45.00
Overhead
126.50
Total
$236.50
Overhead costs include variable material handling costs of $6.50,
which are applied to products on the basis of direct material
costs. The remainder of the overhead costs are applied on the basis
of direct labor dollars and consist of 60% variable costs...
Under absorption costing a company had the following per unit costs when 10,000 units were produced....
Under absorption costing a company had the following per unit costs when 10,000 units were produced. Direct labor $ 3.20 Direct material 4.20 Variable overhead 5.20 Total variable cost 12.60 Fixed overhead ($65,000/10,000 units) 6.50 Total product cost per unit $ 19.10 Required: 1. Compute the company’s total product cost per unit if 12,500 units had been produced.
Roth company manufactures a fantasy part for use in its production. when 10,000 units are produced,...
Roth company manufactures a fantasy part for use in its production. when 10,000 units are produced, the costs per fantasy are: direct materials $0.80 direct manufacturing labor $2.80 variable manufacturing overhead $1.20 fixed manufacturing overhead $1.60 total $6.40 Spinella Company has offered to sell to Roth company 10,000 units of the fantasy part for $6.00 per unit. the plant facilities at Roth could be used to manufacture another item at a savings of $9,000 if Roth accepts the offer to...
Cruise Company produces a part that is used in the manufacture of one of its products....
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6100 units, are as follows: Direct materials $4.50 Direct labor $4.30 Variable manufacturing overhead $3.40 Fixed manufacturing overhead $1.40 Total cost $13.60 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part? $8.80...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products....
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials Direct labor Overhead Total $64.53 37.63 126.50 $228.66 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and...
1. Zippy company manufactured 10,000 units in December with a total product cost of $27780 They...
1. Zippy company manufactured 10,000 units in December with a total product cost of $27780 They had zero finished goods inventory at the start of December. In December Zippy sold 7857 units at a unit price of $6.91. Period expenses were $3348. What is the amount of Zippy's gross profit (otherwise know as gross margin).? 2. Andee Company spends $3.38 in variable costs for each product produced. Fixed manufacturing overhead costs are $114006 a year. This year, they produced 10,000...
Piels Corporation produces a part that is used in the manufacture of one of its products....
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows Direct materials $87,000 126,000 58,000 136,000 $407.000 Direct labor Variable factory overhe ad Fixed factory overhead Total costs Of the fixed factory overhead costs, $55,000 is avoidable Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the...
Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 unit...
Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 units are produced, the costs per unit are: Direct materials $15 Direct manufacturing labor 60 Variable manufacturing overhead 26 Fixed manufacturing overhead 32 Total $133 Monty Company has offered to sell to Lewis Auto Company 10,000 units of the part for $122 per unit. The plant facilities could be used to manufacture another item at a savings of $182,000 if Lewis accepts the offer. In...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products....
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials Direct labor Overhead Total $65.00 45.00 126.50 $236.50 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and...
Innova uses 1,000 units of the component IMC2 every month to
manufacture one of its products. The unit costs incurred to
manufacture the component are as follows.
Direct materials
$ 65.00
Direct labor
45.00
Overhead
126.50
Total
$236.50
Overhead costs include variable material handling costs of $6.50,
which are applied to products on the basis of direct material
costs. The remainder of the overhead costs are applied on the basis
of direct labor dollars and consist of 60% variable costs...
Innova uses 1,000 units of the component IMC2 every month to
manufacture one of its products. The unit costs incurred to
manufacture the component are as follows.
Direct materials
$ 65.00
Direct labor
45.00
Overhead
126.50
Total
$236.50
Overhead costs include variable material handling costs of $6.50,
which are applied to products on the basis of direct material
costs. The remainder of the overhead costs are applied on the basis
of direct labor dollars and consist of 60% variable costs...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials Direct labor Overhead Total $64.53 37.63 126.50 $228.66 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and...
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows Direct materials $87,000 126,000 58,000 136,000 $407.000 Direct labor Variable factory overhe ad Fixed factory overhead Total costs Of the fixed factory overhead costs, $55,000 is avoidable Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the...
Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows. Direct materials Direct labor Overhead Total $65.00 45.00 126.50 $236.50 Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago