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inn [45]
3 years ago
6

Holton Company makes three products in a single facility. Data concerning these products follow:

Business
1 answer:
evablogger [386]3 years ago
8 0

Answer:

86,700 minutes

Explanation:

a.  Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700  

Minutes required to produce 1000 units of B (1000 x 2) 2000  

Minutes required to produce 2000 units of C (2000 x 2) 4000  

Total minutes   =    86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

                         Product A Product B Product C  

Selling price per unit           $ 137.10     $ 74.80 $ 167.60  

Direct materials     $ 59.70       $ 41.70  $ 100.70  

Direct labor      $ 43.00       $ 13.30  $ 29.50

Variable manufacturing overhead $ 8.20       $ 4.30 $ 13.80

Variable selling cost per unit  $ 15.20       $ 3.10  $ 8.50

Total variable cost per unit        $ 126.10    $ 62.40 $ 152.50

Contribution margin per unit  $ 11.00  $ 12.40  $ 15.10

Mixing minutes per unit          26.90 2.00  2.00

Contribution margin per minute  $0.41 $6.20  $7.55

Rank in terms of profitability          3  2          1

Optimal production          223  1,000  2,000

 

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.  

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

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Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labo
anastassius [24]

Answer:

C. $9.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead equals to

= Total fixed manufacturing overhead cost + Direct labor hours × variable manufacturing overhead per direct labor-hour

= $497,000 + 70,000 × $2.40

= $497,000 + $168,000

= $665,000

And, the direct labor-hours is 70,000  

So the rate is equal to

= $665,000 ÷ 70,000

= $9.5 per direct labor-hour

4 0
3 years ago
What happens if an economy operates at a short-run equilibrium output that exceeds its long-run capacity,
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Answer:

There would be an increase in the price of resources for production

Explanation:

When an economy decides to operate at a short-run equilibrium output the cost of obtaining resources for production of goods and services would increase. and this increase in price of resource will cause the short run aggregate supply curve ( SRAS )to shift to the left.

The short run aggregate supply is the total goods and service produced in an economy at different prices while some of the resources used for the production of the goods and services are fixed

8 0
3 years ago
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The transnational strategy is becoming increasingly necessary to compete in international markets for all of the following reaso
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Answer:

The correct answer is letter "D": it is easy to use because of its unifying goals.

Explanation:

In marketing, the transnational strategy is used by multinationals when there is a need to apply a differentiated advertising method across the diverse countries where the firm has operations. In each country where the company is the products are provided with features characteristic of the region's consumer patterns and expectations.  

Therefore, <em>the transnational strategy is not an easy task since it involves hiring qualified personnel with knowledge on each domestic market where the business is.</em>

8 0
3 years ago
n July 1, 2020, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $4,200,000. The county
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Answer:

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Dr Taxes receivable - current 4,200,000

    Cr Allowance for uncollectible current taxes 84,000

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Prepare a summary journal entry to record the collection of current taxes as of April 30.

Dr Cash 3,900,000

    Cr Taxes receivable - current 3,900,000

Prepare a summary journal entry to record the collection of delinquent taxes, interest, and penalties.

Dr Cash 57,800

    Cr Taxes receivable - delinquent 53,000

    Cr Interest and penalties receivable 4,800

Dr Deferred inflows of resources 57,800

    Cr Revenue 57,800

6 0
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___________ is an important example of an upper-middle income economy because it manages to export a wide array of goods includi
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Answer:

Kazakhstan

Explanation:

Kazakhstan is a country which comes under the upper-middle economy in the world. Their living standard is beyond any other neighbouring countries because it has managed to export a wide array of goods including tobacco.  Over the years, Kazakhstan has suffered major human rights issues, but still managed to grow its economy at a reasonable rate.

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