1. A manufacturing company is engaged in producing three types of products;A, B & C. the production department produces each day components sufficient of make 50 units of A. 25 units of B and 30 units of C. the management confronted with the problem of optimizing the daily production of products in assembly department where only 100 man-hour are available daily to assemble the products the following additional information are

Type of product         Profit contribution per unit              Assemble time per product

A                                              12                                              0.8

B                                              20                                                1.7

C                                               45                                                2.5

1. Formulate Linear Programming problems (LPP)
2. Find the optimal solution by Graphic method & Simplex method

The Aleutian Company produces two products—Rings and Dings; theyare manufactured in two departments—Fabrication and Assembly. Datafor the products and departments are as follows. Rings: 1,000units; 4 labor hours per unit; and 6 machine hours per unit. Dings:2,000 units; 3 labor hours per unit; and 9 machine hours per unit.All of the machine hours take place in the Fabrication Department,which has an estimated total overhead of $90,000. All of the laborhours take place in the Assembly Department, which has an estimatedtotal overhead of $105,000. The Aleutian Company uses departmentaloverhead rates. The Fabrication Department uses machine hours foran allocation base, and the Assembly Department uses labor hours.What is the Assembly Department’s overhead rate per labor hour? a$10.50 b $19.50 c $3.75 d $4.38

Single Plantwide and Multiple Production Department FactoryOverhead Rate Methods and Product Cost Distortion

Pineapple Motor Company manufactures two types of specialtyelectric motors, a commercial motor and a residential motor,through two production departments, Assembly and Testing.Presently, the company uses a single plantwide factory overheadrate for allocating factory overhead to the two products. However,management is considering using the multiple production departmentfactory overhead rate method. The following factory overhead wasbudgeted for Pineapple:

Direct machine hours were estimated as follows:

In addition, the direct machine hours (dmh) used to produce aunit of each product in each department were determined fromengineering records, as follows:

a. Determine the per-unit factory overheadallocated to the Commercial and Residential motors under the singleplantwide factory overhead rate method, using direct machine hoursas the allocation base.

b. Determine the per-unit factory overheadallocated to the Commercial and Residential motors under themultiple production department factory overhead rate method, usingdirect machine hours as the allocation base for eachdepartment.

c. Recommend to management a product costingapproach, based on your analyses in (a) and (b).

The factory overhead determined under the single plantwidefactory overhead rate and multiple production department factoryoverhead rate methods are . This is because the ratio of directmachine hours used by each product from the two departments is .However, the two production department overhead rates are . Thus,Peach should consider the easier rate method in this situation.