The table below summarizes the production rates of two machines for two products in a factory.Production rate for Product A(units per hour)Production Rate for Product B(units per hour)Machine 1 50 80Machine 2 50 20The cost per hour to operate machines 1 and 2 are Php 2500.00 and Php 1500.00 respectively.© 2020 Philippine Science High School System. All rights reserved. This document may contain proprietary information and may only bereleased to third parties with approval of management. Document is uncontrolled unless otherwise marked; uncontrolled documentsare not subject to update notification.*TA – time allocation suggested by the teacher Mathematics 2 |Page 4 of 6 **ATA – actual time allocation spent by the student (for information purposes only)If the production schedule requires at least 250 units of product A and at least 160 unitsproduct B be produced during each day, how long should each machine run to minimize operationcosts? (Sullivan, 2012, 929)

A manufacturer produces two products A and B that are processed on two machines I and II before completion. Machine I can process either 25 units of product A or 10 units of product B per hour. Machine II can process 40 of product B or 20 units of product A per hour.Using matrices determine the following:(i) Monthly output of products A and B if machines I and II operate for 8 and 7 hours per day respectively in a 6-day working week with 4 weeks in a month.mission0000(ii) Per unit cost of production if the cost of operating per hour on two machines is 25,000 and 30,000 respectively.(iii) Total cost of production.

Multiple Choice QuestionA company produces two products. Product A sells for $25, has variable costs of $15, and requires 2 machine hours to produce. Product B sells for $35, has variable costs of $20, and requires 5 machine hours to produce. 40,000 machine hours are available. The company can sell all it can make of either product. Which statement is true?Multiple choice question.Product A should be produced because it will provide greater contribution margin per machine hour.Production should be split between Product A and Product B.Product B should be produced because it will provide greater contribution margin per machine hour.Product A should be produced because it has a lower cost than Product B.

Question 1Below are the details of a production cost center Y, during the period July – December2023:Total budgeted production overhead RM95,000Budgeted production output 2,000 unitsBudgeted direct labour hours 3,500 hoursBudgeted machine hours 4,500 hoursBudgeted direct labour costs RM25,000Budgeted direct material costs RM60,000Details of manufacturing cost for Job No. 77 per units are as follows:Direct material cost RM90Direct labour cost RM30Direct labour hours 6 hoursMachine hours 8 hoursYou are required to:a. calculate the overhead absorption rate (OAR) and cost of overhead beenabsorbed for Job No. 77 using:i. direct materials cost percentage rate (2 marks)ii. direct labour cost percentage rate (2 marks)iii. machine hour (MH) rate (2 marks)iv. direct labour hour (DHL) rate (2 marks)b. calculate the total production cost per unit for Job No. 77 when overhead beenabsorbed using:i. direct materials cost percentage rate (3 marks)ii. machine hour (MH) rate (3 marks)

Company A calculated the following information under traditional and activity-based costing for the production and sale of 1,000 units of Product B:  Traditional ABCSales $100,000 $100,000Cost of goods sold $70,000 $110,000Gross margin $30,000 ($10,000)Which decision should be made about the selling price of Product B? The number of production batches of Product B should be increased. Traditional costing should be used instead of activity-based costing. The price of Product B should be increased. The price of Product B should be decreased.

B) Using the traditional costing and the rate computed in (A), determine:a. the total cost to produce one unit of each product line, andb. the profitability per unit of each product line.Solution:Aspire SteamerDirect materials $445.00 $534.00Direct labour $130.00 $163.00Overhead $190.94 x (25,500/5,100); (21,300/10,650) $954.70 $381.88Total cost per unit $1,529.70 $1,078.88Selling price $1,418.00 $1,586.00Less: costs 1,529.70 1,078.88Profit (loss) per unit -$111.70 $507.12