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U X2 X2 AA - Information regarding the production process for Rayon is as follows: To produce a bolt of doth: Direct Materials: $1,000 Direct

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U X2 X2 AA - Information regarding the production process for Rayon is as follows: To produce a bolt of doth: Direct Materials: $1,000 Direct Labor: 60 hours at $20/hour Variable Overhead: 100 machine hours at a rate of $13/machine h Fixed overhead: $10/machine hour Selling price of a boltof doth: $5,000 Extra costs to further process a boltof doth into finished goods: Direct Materials: $100 Direct Labor: 250 hours, at $20/hour Variable Overhead: 20 machine hours, at a rate of $13/machine hour Fixed overhead: $10/machine hour Selling price of items produced from one bolt of doth: $11,000 What would be the differential income of producing the processing the doth fun Should chang process the cloth further or just sell the bolts of doth? 6. Patriotic Pyros (PP) is a fireworks manufacturing company. Annual celebrations rapidly approaching, and PP only has 50 pounds of powder left (and their supplie run out as well). PP manufactures three types of fireworks: Aerials (for large vem Grounders (for home use), and Poppers (for sale in retail stores), Management is wondering which fireworks should be produced with the remaining powder, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these fireworks: Aerials Grounders Poppers Pounds of powder 2 lbs. 0.75 lbs 0.25 lbs Direct materials $0.25 Direct labor 36.00 53.00 50.50 Variable overhead 51.00 30.50 $2.00 $1.00 Solling price 550.00 520.00 55.00 As that selling costs are negligible at the point on the our market for fireworks and postablished network which type of work would be the most probable for PP to produce

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