Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, Please confirm my answers are correct and show your work, and help me with what question 3 will be. Soft and Cuddly Friends (SCF)

Hi, Please confirm my answers are correct and show your work, and help me with what question 3 will be.

image text in transcribedimage text in transcribed

Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available: The following additional information is available: a. The company's plant has a capacity of 110,000 direct labour-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labour rate is $12 per hour; this rate is expected to remain unchanged during the coming year. c. Fixed manufacturing costs amount to $750,000 per year. Variable overhead costs are $7 per direct labour-hour. d. All of the company's sales and administrative costs are fixed. Required: 1. How many direct labour hours per unit will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.) 2. Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation. (Round "Per Unit" to 2 decimal places.) 3. Assume again that the company does not want to reduce sales of any product. Identify ways the company could obtain the additional output. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Adding another shift Contracting out some work to outside suppliers Employing additional labour force Expanding the workforce Eliminating wasted labour time in the production process Utilizing the unutilized capacity Working overtime

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_2

Step: 3

blur-text-image_3

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

Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015

Authors: M Hanif, A Mukherjee

2nd Edition

935260556X, 9789352605569

More Books

Students also viewed these Accounting questions