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    dundee32's Avatar
    dundee32 Posts: 2, Reputation: 1
    New Member
     
    #1

    Mar 15, 2010, 12:08 PM
    What is the highest price in rate/hour willing to pay for additional capacity DL time
    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.
    dundee32's Avatar
    dundee32 Posts: 2, Reputation: 1
    New Member
     
    #2

    Mar 15, 2010, 12:11 PM
    What is the highest price in rate/hour willing to pay for additional capacity DL time
    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.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Mar 15, 2010, 12:43 PM

    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
    zizingress's Avatar
    zizingress Posts: 1, Reputation: 1
    New Member
     
    #4

    Jul 27, 2011, 07:25 PM
    Quote Originally Posted by dundee32 View Post
    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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