a. Determine the amount of desired profit from the production and sale of 800 handbags. b. Determine the product cost per unit for the production of 800 handbags. c. Determine the product cost markup percentage for handbags.
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- Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor costThe following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
- Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follows: Direct materials $18,000 Direct labor 8,500 Factory overhead 5,500 Total manufacturing cost $32,000 The selling and administrative expenses are $17,000. The management desires a profit equal to 22% of invested assets of $250,000. a. Determine the amount of desired profit from the production and sale of 800 handbags. b. Determine the product cost per unit for the production of 800 handbags. c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Cost per unit Markup per unit Selling price per unitProduct Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follows: Direct materials $18,000 Direct labor 8,500 Factory overhead 5,500 Total manufacturing cost $32,000 The selling and administrative expenses are $17,000. The management desires a profit equal to 22% of invested assets of $250,000. a. Determine the amount of desired profit from the production and sale of 800 handbags.$fill in the blank 1 b. Determine the product cost per unit for the production of 800 handbags.$fill in the blank 2 c. Determine the product cost markup percentage for handbags.fill in the blank 3 % d. Determine the selling price of handbags. Cost $fill in the blank 4per unit Markup $fill in the blank 5per unit Selling price $fill in the blank 6per unitProduct Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $14,600 Direct labor 7,400 Factory overhead 6,400 Total manufacturing cost $28,400 The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000. If required, round your answers to nearest whole number.\ Determine the selling price of handbags. Round your answers to nearest whole value. Cost $per unit Markup $per unit Selling price $per unit
- Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $14,600 Direct labor 7,400 Factory overhead 6,400 Total manufacturing cost $28,400 The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,100 handbags.$ b. Determine the product cost per unit for the production of 1,100 handbags.$per unit c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Round your answers to nearest whole value. Cost $per unit Markup $per unit Selling price $per unitProduct Cost Concept of Product Costing MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 36 Selling and administrative expenses 68,600 Factory overhead 22 Selling and administrative expenses 23 Total $148 per unit MyPhone wants a profit equal to a 15% rate of return on invested assets of $602,000. a. Determine the amount of desired profit from the production and sale of 5,310 cellular phones.$fill in the blank 1 b. Determine the product cost and the cost amount per unit for the production of 5,310 cellular phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones.fill in…Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Fixed costs: Factory overhead $200,800 Selling and administrative expenses 69,000 MyPhone desires a profit equal to a 14% return on invested assets of $601,400. a. Determine the amount of desired profit from the production and sale of 5,000 cell phones. $70 34 25 21 $150 b. Determine the product cost per unit for the production of 5,000 cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost Markup Selling price per unit per…