Han Solo Company makes three products in a single facility. These products have the following unit. product costs: Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Unit product Cost A Products B $ 10.90 $ 15.80 $ 8.00 12.50 12.60 $9.90 2.40 1.20 1.40 11.60 7.20 7.80 $37.40 $ 36.80 $ 27.10 Additional data concerning these products are listed below. Minutes per unit Selling price per unit Variable selling cost per unit Month demands in units A Products B C 2.00 1.00 0.50 $ 55.80 $ 54.60 $ 43.10 $ 2.10 2,000 $ 1.40 1,000 $ 1.90 3,000 The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. A. Provide an optimal production plan for the Han Solo Company (i.e. how many units of each product should be produced). B. Calculate what the maximum profit would be under your optimal production plan.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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Han Solo Company makes three products in a single facility. These products have the following unit.
product costs:
Direct Materials
Direct Labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product Cost
A
Products
B
$ 10.90
$ 15.80
$ 8.00
12.50
12.60
$9.90
2.40
1.20
1.40
11.60
7.20
7.80
$37.40
$ 36.80
$ 27.10
Additional data concerning these products are listed below.
Minutes per unit
Selling price per unit
Variable selling cost per unit
Month demands in units
A
Products
B
C
2.00
1.00
0.50
$ 55.80
$ 54.60
$ 43.10
$ 2.10
2,000
$ 1.40
1,000
$ 1.90
3,000
The mixing machines are potentially a constraint in the production facility.
A total of 5,900 minutes are available per month on these machines. Direct labor is a variable cost in this
company.
A. Provide an optimal production plan for the Han Solo Company (i.e. how many units of each product
should be produced).
B. Calculate what the maximum profit would be under your optimal production plan.
Transcribed Image Text:Han Solo Company makes three products in a single facility. These products have the following unit. product costs: Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Unit product Cost A Products B $ 10.90 $ 15.80 $ 8.00 12.50 12.60 $9.90 2.40 1.20 1.40 11.60 7.20 7.80 $37.40 $ 36.80 $ 27.10 Additional data concerning these products are listed below. Minutes per unit Selling price per unit Variable selling cost per unit Month demands in units A Products B C 2.00 1.00 0.50 $ 55.80 $ 54.60 $ 43.10 $ 2.10 2,000 $ 1.40 1,000 $ 1.90 3,000 The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. A. Provide an optimal production plan for the Han Solo Company (i.e. how many units of each product should be produced). B. Calculate what the maximum profit would be under your optimal production plan.
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