2. If Blossom has only 40,000 direct labor hours available, calculate the number

Question

2.
If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) 4. If Blossom has only 233,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)


Sales price $ 41 $ 45 $ 59   Direct materials   7 8 9   Direct labor 1 3 7   Variable manufacturing overhead 2 2 2   Fixed manufacturing overhead 6 6 6   Required number of labor hours 0.5 0.5 1   Required number of machine hours 4.0 2.50 2.0

   Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:    
  Table A 50,000 units   Table B 20,000 units   Table C 30,000 units
2.
If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.) 4. If Blossom has only 233,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)


Sales price $ 41 $ 45 $ 59   Direct materials   7 8 9   Direct labor 1 3 7   Variable manufacturing overhead 2 2 2   Fixed manufacturing overhead 6 6 6   Required number of labor hours 0.5 0.5 1   Required number of machine hours 4.0 2.50 2.0

   Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:    
  Table A 50,000 units   Table B 20,000 units   Table C 30,000 units
2.
If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Explanation / Answer

a)

caculation of contribution per direct labour hour

b) total direct labour hours avilable =40,000

table b production reqired hours = 20,000*0.5=10,000 labour hours

table a production required hours =50,000*0.5= 25,000 labour hours

table c production balnce hours = 40,000-10,000-25,000 = 5,000 hours

tablec production units = 5,000/1=5,000

2)caculation of contribution per machine hour

32/2.5=12.8

b) total direct machine hours avilable =233,000

table c production reqired hours = 20,000*2=40,000 machine hours

table a production required hours =50,000*2.5= 125,000 machine hours

table c production balnce hours = 233,000-40,000-125,000 = 68,000 hours

tablec production units = 68,000/4=17,000 units.

particulars table A table B table C sale price $ 41 $ 45 $ 59 less variable cost direct materials $ 7 $ 8 $ 9 direct labour $ 1 $ 3 $ 7 variable manufacturing overhead $ 2 $ 2 $ 2 contribution $ 31 $ 32 $ 41 contribution per direct labour hour 31/0.5=$ 62 32/0.5=$ 64 41/1=$ 41 ranking as direct labour hours as bottleneck 2 1 3

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