Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two type
s of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, 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 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that a maximum of 52,080 units of each sweatshirt can be sold.
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Answer:
Kindly find the complete questions attached.
a) 325,000 units were transferred to finished goods
direct materials 171,053
direct labor 85,526
factor overhead 68,421
(b) February's equivalent units of production was 445,000 units :
direct materials 234,211
direct labor 117,105
factor overhead 93,684
(c) the cost of direct material introduced into production during February was $234,211
(d) The cost of direct labor introduced into production in February was $35,132
(e) The factory overhead application rate was 80% of Direct Labor
(f ) Of the total cost (beginning inventory plus additional production cost), allocation to
ending work in process is 120,000 units costing $80,211
(g) Of the total cost (beginning inventory plus additional production cost), transfer to finished goods inventory is $217,237
(h) February's gross profit is $373,363
Please review the attached for detailed workings and presentation of the answers
