Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Ooo-La-La Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit

3. Ooo-La-La Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product lines follow.
Plain Regular Super
Selling price $40 $55 $65
Direct material 12 16 22
Direct labor (at $20 per hour) 10 15 20
Variable overhead 8 12 16
Fixed overhead 6 7 8
Variable overhead is applied on the basis of direct labor dollars, whereas fixed overhead is applied on the basis of machine hours. There is sufficient demand for the additional manufacture of all products.
Required:
3.1 If Ooo-La-La has excess machine capacity and can add more labor as needed (i.e., neither machine capacity nor labor is a constraint), which product is the most attractive to produce?
3.2 If Ooo-La-La has excess machine capacity but a limited amount of labor time available, in which order should product or products be manufactured with the excess capacity?
3.3 If Ooo-La-La has excess machine capacity but a limited amount of direct materials available, in which order should product or products be manufactured with the excess capacity?
please give more detail explains for each questions!
thanks!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Auditing And Forensic Accounting

Authors: Tommie W. Singleton, Aaron J. Singleton, G. Jack Bologna, Robert J. Lindquist

3rd Edition

0471785911, 978-0471785910

More Books

Students also viewed these Accounting questions

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago