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Windhoek Enterprises manufactures two products from different combinations of the same rese selling prices and unit cost details for each product are as follows: Product

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Windhoek Enterprises manufactures two products from different combinations of the same rese selling prices and unit cost details for each product are as follows: Product D G N$ per unit 115 N$ per unit 120 20 12 10 24 21 28 Selling price Direct material A (N$5 per kg) Direct material B (N$3 per kg) Skilled labour (N$7 per hour) Variable overhead (N$2 per machine hour) Fixed overheads Profit 14 18 28 36 13 11 ** Fixed overheads are absorbed using absorption rate per machine hour. This is an unavoidable overhead cost which is not affected by the mix or volume of product produced. The maximum weekly demand for products D and G is 400 units and 450 units respectively, and this normal weekly production volume achieved by Windhoek Enterprises. However, for the next four we Page 11 of 16 achievable production level will be reduced as a result of a shortage of available resources. The resources that are expected to be available per week are as follows: Direct material A 1800 kg Direct material B 3500 kg Skilled labour 2500 hours Machine time 6500 machine hours QTY The following is the final simplex tableau derived from the information above. Variables in D G Skilled Machine Material A Material B solution mix labour time D 1 0 0 0 0.34 -0.08 Skilled labour 0 0 1 0 -0.86 -0.17 G 0 1 0 0 -0.16 0.17 Machine time 0 0 0 1 -0.89 -0.92 IZ row ? ? ? ? ? C-Z row ? ? ? ? ? 308.33 416.67 283.33 1791.67 ? I. The optimal solution for this problem is shown on the simplex report above, complete the Z row, C-Z row and interpret the results (all amounts in Qty column, Z row and C-Z row for material A as well as material B). 4 Windhoek Enterprises manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows: Product D G N$ per unit N$ per unit Selling price 115 120 Direct material A (N$5 per kg) 20 Direct material B (N$3 per kg) 12 24 Skilled labour (N$7 per hour) 28 21 Variable overhead (N$2 per machine hour) 14 18 Fixed overheads** 28 36 Profit 13 11 10 ** Fixed overheads are absorbed using absorption rate per machine hour. This is an unavoidable central overhead cost which is not affected by the mix or volume of product produced. The maximum weekly demand for products D and G is 400 units and 450 units respectively, and this is the normal weekly production volume achieved by Windhoek Enterprises. However, for the next four weeks the achievable production level will be reduced as a result of a shortage of available resources. The resource that are expected to be available per week are as follows: Direct material A 1800 kg Direct material B 3500 kg Skilled labour 2500 hours Machine time 6500 machine hours QTY 308.33 416.67 The following is the final simplex tableau derived from the information above. Variables in D Skilled Machine Material A Material B solution mix labour time 0 0 0 0.34 -0.08 Skilled labour 0 0 1 0 -0.86 -0.17 G 0 0 0 -0.16 0.17 Machine time 0 0 0 1 -0.89 -0.92 Z row ? ? ? ? ? ? C-Z row ? ? ? ? ? ? 283.33 1791.67 ? - 3.2 The optimal solution for this problem is shown on the simplex report above, complete the Z row, C-Z row and interpret the results (all amounts in Qty column, Z row and C-Z row for material A as well as material B). Total Windhoek Enterprises manufactures two products from different combinations of the same rese selling prices and unit cost details for each product are as follows: Product D G N$ per unit 115 N$ per unit 120 20 12 10 24 21 28 Selling price Direct material A (N$5 per kg) Direct material B (N$3 per kg) Skilled labour (N$7 per hour) Variable overhead (N$2 per machine hour) Fixed overheads Profit 14 18 28 36 13 11 ** Fixed overheads are absorbed using absorption rate per machine hour. This is an unavoidable overhead cost which is not affected by the mix or volume of product produced. The maximum weekly demand for products D and G is 400 units and 450 units respectively, and this normal weekly production volume achieved by Windhoek Enterprises. However, for the next four we Page 11 of 16 achievable production level will be reduced as a result of a shortage of available resources. The resources that are expected to be available per week are as follows: Direct material A 1800 kg Direct material B 3500 kg Skilled labour 2500 hours Machine time 6500 machine hours QTY The following is the final simplex tableau derived from the information above. Variables in D G Skilled Machine Material A Material B solution mix labour time D 1 0 0 0 0.34 -0.08 Skilled labour 0 0 1 0 -0.86 -0.17 G 0 1 0 0 -0.16 0.17 Machine time 0 0 0 1 -0.89 -0.92 IZ row ? ? ? ? ? C-Z row ? ? ? ? ? 308.33 416.67 283.33 1791.67 ? I. The optimal solution for this problem is shown on the simplex report above, complete the Z row, C-Z row and interpret the results (all amounts in Qty column, Z row and C-Z row for material A as well as material B). 4 Windhoek Enterprises manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows: Product D G N$ per unit N$ per unit Selling price 115 120 Direct material A (N$5 per kg) 20 Direct material B (N$3 per kg) 12 24 Skilled labour (N$7 per hour) 28 21 Variable overhead (N$2 per machine hour) 14 18 Fixed overheads** 28 36 Profit 13 11 10 ** Fixed overheads are absorbed using absorption rate per machine hour. This is an unavoidable central overhead cost which is not affected by the mix or volume of product produced. The maximum weekly demand for products D and G is 400 units and 450 units respectively, and this is the normal weekly production volume achieved by Windhoek Enterprises. However, for the next four weeks the achievable production level will be reduced as a result of a shortage of available resources. The resource that are expected to be available per week are as follows: Direct material A 1800 kg Direct material B 3500 kg Skilled labour 2500 hours Machine time 6500 machine hours QTY 308.33 416.67 The following is the final simplex tableau derived from the information above. Variables in D Skilled Machine Material A Material B solution mix labour time 0 0 0 0.34 -0.08 Skilled labour 0 0 1 0 -0.86 -0.17 G 0 0 0 -0.16 0.17 Machine time 0 0 0 1 -0.89 -0.92 Z row ? ? ? ? ? ? C-Z row ? ? ? ? ? ? 283.33 1791.67 ? - 3.2 The optimal solution for this problem is shown on the simplex report above, complete the Z row, C-Z row and interpret the results (all amounts in Qty column, Z row and C-Z row for material A as well as material B). Total

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