Question
Wintrust Corporation has 4,000 machine hours available to use to produce either Product 22 or Product 44. The cost accounting department developed the following unit
Wintrust Corporation has 4,000 machine hours available to use to produce either Product 22 or Product 44. The cost accounting department developed the following unit information for each of the products:
| Product 22 | Product 44 | |
| Sales price | $20.00 | $40.00 |
| Direct materials | 5.00. | 8.00 |
| Direct labour | 3.00 | 2.00 |
| Variable manufacturing overhead | 4.50 | 5.00 |
| Fixed manufacturing overhead | 3.00 | 5.00 |
| Machine time required | 15 minutes | 75 minutes |
Instructions Management wants to know which product to produce in order to maximize the company's income. Taking into consideration the constraint under which the company operates, prepare a report to show which product should be produced and sold.
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Financial And Managerial Accounting The Basis For Business Decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
19th Edition
1260247937, 978-1260247930
