cost accounting Bob's Mill produces two gourmet products: Oatmeal and...
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Accounting
cost accounting
Bob's Mill produces two gourmet products: Oatmeal and Oat Bran. Both products use the same Direct Material, oats. The oats cost $1 per pound and a maximum of 5,000 pounds is available each month (due to a drought in the oat-growing part of the country). Bob's must produce a minimum of 200 pounds of each product. Other information is shown below. Oat Oatmeal Bran $6 per pound pound $9 per Selling Price $1 Variable Costs: Direct Matl. $1 per pound per pound Direct Labor & $2 per other pound costs $3 per pound Quantity $3 Direct Labor & $2 per other pound costs per pound Quantity of Oats required to make 1 pound of product 1.5 1 pounds pound REQUIRED: How many total pounds of each product (Oatmeal & Oat Bran) should Bob's produce (to maximize profits) within their constraints? pounds of Oatmeal pounds of Oat Bran Show calculations and label them clearly to earn
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