Question

G. Kunz and Sons, Inc., manufactures two products used in the heavy equipment industry. Both products...

G. Kunz and Sons, Inc., manufactures two products used in the heavy equipment industry. Both products require manufacturing operations in two departments. (Product 1 Product 2 Profit/unit $20 $25) (Dept. A hrs 6 8)( Dept. B hrs 12 10) For the coming production period, Kunz has available up to 900 hours of labor that can be allocated to either of the two departments. Find the production plan and labor allocation (exact hours assigned in each department) that will maximize the total contribution to profit.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company manufactures Products A, B, and C. Each product is processed in three departments: I,...
A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II, and III are 900, 1080, and 840, respectively. The time requirements (in hours per unit) and profit per unit for each product are as follows. (For example, to make 1 unit of product A requires 2 hours of work from Dept. I, 3 hours of work from Dept. II, and 2...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead Direct Labor Hours (dlh) Product A B Painting Dept. $529,209 12,700 dlh 15 dlh 2 dlh Finishing Dept. 69,864 8,200 5 18     Totals $599,073 20,900 dlh 20 dlh...
The building maintenance department for the Steering Manufacturing Company budgets annual costs of $5,402,000 based on...
The building maintenance department for the Steering Manufacturing Company budgets annual costs of $5,402,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. Steering is considering two allocation bases for assignment of costs to departments: (1) square footage and (2) direct labor hours. The following data relate to the potential allocation bases: Production Dept. 1 Production Dept. 2 Square footage 31,660 41,340 Direct labor hours 41,340 31,660 Calculate the costs allocated...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead Direct Labor Hours (dlh) Product A B Painting Dept. $272,300 8,900 dlh 14 dlh 2 dlh Finishing Dept. 74,100 8,300 5 18 Totals $346,400 17,200 dlh 19 dlh...
Activity-Based Department Rate Product Costing and Product Cost Distortions Big Sound Inc. manufactures two products: receivers...
Activity-Based Department Rate Product Costing and Product Cost Distortions Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: Indirect labor $400,400 Subassembly Department 198,800 Final Assembly Department 114,800 Total $714,000 The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Budgeted Activity Cost Activity Base Setup $138,600 Number of setups                               Quality control 261,800 Number of inspections                        Total...
Ficcus Inc. manufactures two types of products, the Gx and the Tx models. The company operates...
Ficcus Inc. manufactures two types of products, the Gx and the Tx models. The company operates five days per week and makes a net profit of $125 on the Gx model, and $175 on the Tx model. The models are manufactured in two main departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work a 7-hour shift. On an average, to produce...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single...
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead Direct Labor Hours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16     Totals $320,000 20,000 dlh 20 dlh...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and...
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit   Rings 970 6 8   Dings 2,120 8 7 All of the machine hours take place in the Fabrication Department, which has estimated total factory overhead of $81,900. All of the labor hours take place in the Assembly Department, which has estimated...
A manufacturer manufactures two types of engineering diagnostic equipment used in construction. The two products are...
A manufacturer manufactures two types of engineering diagnostic equipment used in construction. The two products are based on different technologies, x-ray and ultrasound, but are manufactured in the same factory. The manufacturer has computed the manufacturing cost of the x-ray and ultrasound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead...
RC Ltd (“RC”) manufactures and distributes products in the healthcare industry. RC has two operating departments...
RC Ltd (“RC”) manufactures and distributes products in the healthcare industry. RC has two operating departments - E and C, and three support departments - Administration, Marketing, and Engineering. The Engineering department allocates costs using budgeted total maintenance hours. The Administration and Marketing departments use the number of labour hours incurred. The budgeted costs for Administration, Marketing, and Engineering departments are $140,000, $280,000, and $600,000 respectively. The budgeted manufacturing costs for departments E and C are $750,000 and $850,000 respectively....