ACCT 631 Kitchen Magician/TUTORIALOUTLET DOT COM ACCT 631 Kitchen Magician/TUTORIALOUTLET DOT COM

ACCT 631 Kitchen Magician
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Kitchen Magician, Inc. has assembled the following data pertaining to
its two most popular products. Blender
Direct
material $ Electric Mixer
19 $ 26 Direct
labor 12 40 Manufactu
ring
overhead
@ $48 per
machine
hour 48 96 Cost if
purchased
from an
outside
supplier 66 130 35,000 42,000 Annual
demand
(units) Past experience has shown that the fixed manufacturing
overhead component included in the cost per machine hou Required:
1. If 74,000 machine hours are available, and management desires to
follow an optimal strategy, how ma
2. With all other things constant, if management is able to reduce the
direct material for an electric mixer If 74,000 machine hours are
available, and management desires to follow an optimal strategy, how
many units o Blender Electric Mixer Manufacture
Purchase With all other things constant, if management is able to
reduce the direct material for an electric mixer to $19 p Blender
Manufacture
Purchase Electric Mixer he cost per machine hour averages $24.
Kitchen Magician’s management has a policy of filling all sales
orders, even if it mean optimal strategy, how many units of each