Demand
Next year
(units) Selling
Price
per Unit Direct
Materials Direct
Labor
Debbie 26,000 $36.00 $4.40 $5.40
Trish 50,000 $21.00 $3.10 $2.40
Sarah 40,000 $20.00 $4.40 $7.80
Mike 54,000 $16.00 $3.60 $6.00
Sewing kit 520,000 $14.00 $1.00 $2.40

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The following additional information is available:

a. The company's plant has a capacity of 166,500 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 per hour is expected to remain unchanged during the coming year.
c. Fixed costs total $306,000 per year. Variable overhead costs are $4 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.

Demand
Next year
(units) Selling
Price
per Unit Direct
Materials Direct
Labor
Debbie 26,000 $36.00 $4.40 $5.40
Trish 50,000 $21.00 $3.10 $2.40
Sarah 40,000 $20.00 $4.40 $7.80
Mike 54,000 $16.00 $3.60 $6.00
Sewing kit 520,000 $14.00 $1.00 $2.40

--------------------------------------------------------------------------------

The following additional information is available:

a. The company's plant has a capacity of 166,500 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 per hour is expected to remain unchanged during the coming year.
c. Fixed costs total $306,000 per year. Variable overhead costs are $4 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.

Please do not double post as it just confuses things. I've merged yours back into one thread.

Also please see the guidelines for posting homework:
https://www.askmehelpdesk.com/financ...-b-u-font.html

Quote:

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Originally Posted by dundee32

Demand
Next year
(units) Selling
Price
per Unit Direct
Materials Direct
Labor
Debbie 26,000 $36.00 $4.40 $5.40
Trish 50,000 $21.00 $3.10 $2.40
Sarah 40,000 $20.00 $4.40 $7.80
Mike 54,000 $16.00 $3.60 $6.00
Sewing kit 520,000 $14.00 $1.00 $2.40

--------------------------------------------------------------------------------

The following additional information is available:

a. The company's plant has a capacity of 166,500 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 per hour is expected to remain unchanged during the coming year.
c. Fixed costs total $306,000 per year. Variable overhead costs are $4 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.

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