Question
Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $13.30
Broze Company makes four products in a single facility. These products have the following unit product costs: |
Products | ||||
A | B | C | D | |
Direct materials | $13.30 | $9.20 | $10.00 | $9.60 |
Direct labor | 18.40 | 26.40 | 32.60 | 39.40 |
Variable manufacturing overhead | 3.30 | 1.70 | 1.60 | 2.20 |
Fixed manufacturing overhead | 25.50 | 33.80 | 25.60 | 36.20 |
Unit product cost | $60.50 | $71.10 | $69.80 | $87.40 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 2.80 | 3.60 | 3.30 | 2.40 |
Selling price per unit | $75.10 | $92.50 | $86.40 | $103.20 |
Variable selling cost per unit | $ 1.20 | $ .20 | $ 2.30 | $ .60 |
Monthly demand in units | 3,000 | 3,000 | 2,000 | 2,200 |
The grinding machines are potentially the constraint in the production facility. A total of 52,700 minutes are available per month on these machines. |
Direct labor is a variable cost in this company. |
Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the existing grinding machine capacity? (Round your intermediate calculations and final answer to 2 decimal places.) |
Answer as soon as possible to get points quickly!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started