Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide solution ASAP Your accounting manager would like you to assist with the preparation of the sales variance analysis for the 2 nd quarter

please provide solution ASAP image text in transcribed
image text in transcribed
Your accounting manager would like you to assist with the preparation of the sales variance analysis for the 2 nd quarter of 2023. Budgeted and actual sales information for the company are as follows: The following budgeted price and unit cost information is available for 2023: Note 1: Manufacturing overhead costs is allocated @ $6.00/ machine hour to all three products. 40% of the manufacturing overhead costs is considered variable. Remaining are fixed costs. Note 2: 10% of the selling and admin costs are variable. The remaining are fixed. PNBC monthly machine hour capacity is limited to 1,800 hours. Monthly demand information is as follows: Question 1: Prepare a product mix analysis. Determine the machine hours required for each of the product. Determine the ranking of the products in order of its contribution margin per constrained resource. (11 marks) Question 2: Using the linear programming model under Solver, determine the optimal number of units of each product PNBC should make and sell each month to maximize the profit. (Include the screen shot of your LP models and results). (10 marks) Interpret the Answer Report and Sensitivity Report. What are the binding constraints? Explain why the constraints are binding or not binding. If the company can acquire more machine hours, what price would the company be willing to pay

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

More Books

Students also viewed these Accounting questions

Question

LO3 Discuss the steps of a typical selection process.

Answered: 1 week ago