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GZ Inc. manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, GZ could devote all its capacities to a single product. Unit prices, cost data, and processing requirements follow.
Product G Product ZUnit selling price $70 $230Unit variable costs $30 $90Machine hrs. per unit .4 1.4Labour hrs. per unit 2.0 6.0
Next year, the company will be limited to 160,000 machine hours and 120,000 labor hours. Fixed costs for the year are $1,500,000.
1. Compute the most profitable combination of products to be produced next year.
2. Prepare an income statement using the contribution margin format for the product volume computed in problem 1.
Assume new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Finish the depreciation schedule shown below using the
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cite some example on how to to calculate variable cost
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Objectives of Budgetary Planning 1) Coordination The budgetary process needs that visible detailed budgets are developed to cover every activity, function or department
Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor
product mix decisions with capacity constraint
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