Question
Question 61: HighPlains Inc. produces four products: A, B, C and D. The following information is associated with the four products. Fixed manufacturing costs
Question 61: HighPlains Inc. produces four products: A, B, C and D. The following information is associated with the four products. Fixed manufacturing costs are applied at a rate of $2.50 per machine hour. Per Unit Selling Price Variable Costs: Direct materials Product A $26.00 Product B Product C Product D $28.00 $31.00 $35.00 4.00 4.00 5.00 5.00 Direct labor 7.00 8.00 6.00 6.00 Variable Overhead 1.00 1.00 4.00 5.00 Total Variable Costs 12.00 13.00 15.00 16.00 Fixed manufacturing costs applied 1.50 1.75 2.00 2.25 Operating profit $12.50 $13.25 $14.00 $16.75 If the constrained resource is machine hours, in what priority should the products be produced? a) Product D, Product C, Product B and Product A. b) Product A, Product B, Product C, and Product D. Product D, Product A, Product C, and Product B. ( d) Product A, Product B, Product D, and Product C.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started