ACCTG424 Lecture Notes - Feasible Region, Contribution Margin, Deutsche Luft Hansa
8 Apr 2014
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Direct labour available = 8,000 tackle boxes x 1. 25 hours* = 10,000 hours. Skateboards would require 17,500 / 2 = 8,750 hours. * . 75 dl cost of a tackle box / . 00 dl wage rate = 1. 25 hour per tackle box. Selling and administrative: - 6 | - 6. ** manufacturing overhead rate / hour - total: . 50 / 1. 25. With remaining capacity of 10,000 - 8,750 = 1,250 hours, make 1,000 tackle boxes and purchase remaining 9,000 from external supplier. Revenue and cost data for each type of cookie are: Della simpson inc. sells two popular brand os cookies, della"s delight and bonny"s bourbon. Della"s delight goes through the mixing and baking departments and bonny"s bourbon, a filled cookie, goes through the mixing, filling, and baking departments. Michael shirra, vice- president of sales, believes that at the current price, della simpson can sell all of its daily production of della"s delight and bonny"s bourbon.
