What is the highest price in terms of a rate per hour that

Assignment Help Accounting Basics
Reference no: EM13576280

The Brandilyn Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining the best sales and production mix for the coming year. The company has provided the following data:

Product Demand
Next year
(units)
Selling
Price
per Unit
Direct
Materials
Direct
Labor
  Marcy 18,000 $35.00 $3.30    $4.80   
  Tina 33,000 $25.00 $1.40    $2.40   
  Cari 30,000 $22.00 $5.20    $9.00   
  Lenny 55,000 $18.00 $2.30    $6.60   
  Sewing kit 510,000 $17.00 $1.30    $1.80   

The following additional information is available:
a.

The company's plant has a capacity of 129,750 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products.

b. The direct labor rate of $12.00 per hour is expected to remain unchanged during the coming year.
c. Fixed costs total $296,000 per year. Variable overhead costs are $6.00 per direct labor-hour.
d. All of the company's nonmanufacturing costs are fixed.
e. The company's finished goods inventory is negligible and can be ignored.
Required:
1.

Determine the contribution margin per direct labor-hour expended on each product. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Product Contribution
margin per DLH
  Marcy $   
  Tina $   
  Cari $   
  Lenny $   
  Sewing Kit $   

2.

Calculate the the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year. (Do not round intermediate calculations.)

Product Total
DLHs
  Marcy   
  Tina   
  Cari   
  Lenny   
  Sewing Kit   


  Total DLHs required   



4.

What is the highest price, in terms of a rate per hour, that Brandilyn Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Highest price $  per hour

Reference no: EM13576280

Questions Cloud

What are the first and last deciles of the standard normal : q1. length of pregnanciesthe length of human pregnancies from conception to birth varies according to a distribution
Assuming this is her only source of income and her marginal : marissa participates in her employers nonqualified deferred compensation plan. for 2013 she is deferring 15 percent of
A population is estimated to have a standard deviation of : a population is estimated to have a standard deviation of 10. we want to estimate the population mean within 2 with a
Customer arrives at a checkout counter in a department : customer arrives at a checkout counter in a department store have a poisson distribution with average of 4 arrivals
What is the highest price in terms of a rate per hour that : the brandilyn toy company manufactures a line of dolls and a doll dress sewing kit. demand for the dolls is increasing
In addition the company had an interest expense of 210 000 : net income and ocf. during 2010 brick paving limited had sales of 2 700 000. cost of goods sold administrative and
Depreciable asset a was purchased january 2 2007 it : on december 31 2010 before the books were closed the management and accountants of madrasa inc. made the following
A coin that has been altered so that the probability of : a coin that has been altered so that the probability of ?ipping heads is 0.4 is ?ipped twice. let x be the number of
A test has a mean of 104 and a standard deviation of 16 we : a test has a mean of 104 and a standard deviation of 16. we want to be 98 certain that we are within 4 points of the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computer equipment and a service retail store

Computer equipment and a service retail store.

  Internal controls of the organization

Why do auditors have to consider the internal controls of the organization? What are some key elements of internal control? Which are the most important? How will the auditor have to modify the audit program if the internal controls are deemed ina..

  Grayson bank agrees to lend the trust company 100000 on

grayson bank agrees to lend the trust company 100000 on january 1. trust company signs a 100000 8 9-month note. the

  Calculate price and efficiency variances for all of the

spam inc. had the following standard costs and plans for fiscal current year for the production of custom meat products

  Labor to production at a cost

If a company assigns factory labor to production at a cost of $42,000 when standard cost is $40,000, it will:

  How does lifo affect income if prices increase decrease or

how does lifo affect income if prices increase decrease or remain the same?and how does fifo do the same? and how do

  Determine the unit cost and the total cost of unit

Unit variable costs and total fixed costs are expected to remain unchanged next year. Calculate the unit cost and the total cost of 51,000 units are produced next year.

  Computing unlevered beta of morgan entertainment

Morgan Entertainment has a levered beta of 1.20. The firm's capital structure consists of 40% debt and 60% equity and it has a corporate tax rate of 40%. What is Morgan's unlevered beta?

  Total costs were 76900 when 26000 units were produced and

total costs were 76900 when 26000 units were produced and 97500 when 39000 units were produced. use the high-low method

  On november 1 wti agreed to do a special six-month course

on november 1 wti agreed to do a special six-month course starting immediately for a client. the contract calls for a

  Bad debt expense of smithson corporation

Smithson corporation had a 1/1/08 balance in the allowance for doubtful accounts of $10000. During 2008, it wrote off $7200 of accounts receivable and collected $2100 on accounts previously written off.

  You will be creating strategies and policies for it

business scenario you have been hired as cio for a small independent auto-parts store - northwest georgia auto parts.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd