Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

39. Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products 11.00 40.80 3.60 11.40 $ 34.00

image text in transcribed
39. Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products 11.00 40.80 3.60 11.40 $ 34.00 3.00 27.00 Direct materials 10.60 $ 27.80 14.70 $ 19.80 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 3.10 4.70 37.60 26.90 35.20 93.00 75.40 76.70 66.10 Additional data concerning these products are listed below. Products B. Grinding minutes per unit Selling price per unit Variable selling cost per unit 4.20 4.70 3.80 5.70 76.50 $ 2.60 104.60 93.90 $ 87.80 $ 1.60 $ 3.70 $ 4,400 2.00 Monthly demand in units 4,400 2,400 3,400 The grinding machines are potentially the constraint in the production facility. A total of 68,100 minutes is available per month on these machines. Direct labor is a variable cost in this company. If there is more demand for time on the grinding machine than it has capacity, and the company is willing to rent a grinding machine, up to how much should the company be willing to pay for one additional minute of rental grinding machine time if the company has made the best use of the existing grinding machine capacity? (Round your intermediate calculations to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions