#2

For Chapter 10 (Relevant Costing - Sales Mix) Questions: Sales Price/unit Direct Material/unit Direct Labor/unit Variable OH/unit Product Q Product R 22.00 20.00 7.50 6.70 4.20 5.30 4.30 4.00 MH/unit 2.00 1.00 For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs DM DL OH selling expense admin expense total expense unit 7.70 6.30 10.00 6.00 2.60 32.60 Q 30,000 231,000 189,000 300,000 180,000 78,000 978,000 Assume OH is 75% variable and 25% fixed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed Given the information under Chapter 10 (Relevant Costing - Sales Mix), what would you suggest be produced if there are constraints on machine hours? Why? (I will review each answer here; don't worry if it's marked incorrect)