=+16-43 KKK Quality improvement, theory of constraints OBJECTIVE 3 Kiwi Designs Ltd makes printed cloth in two
Question:
=+16-43 KKK Quality improvement, theory of constraints OBJECTIVE 3 Kiwi Designs Ltd makes printed cloth in two departments: weaving and printing. Currently, all product first moves through the Weaving Department and then through the Printing Department before it is sold to retail distributors for $1250 per roll. Kiwi Design provides the following information:
Weaving Printing Monthly capacity 10 000 rolls 15 000 rolls Monthly production 9 500 rolls 8 550 rolls Direct materials cost per roll of cloth processed at each operation $500 $100 Fixed operating costs $2 850 000 $427 500 Fixed operating cost per roll ($2 850 000 ÷ 9500 rolls; $427 500 ÷ 8550 rolls) $300 per roll $50 per roll
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan