Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Products

Direct materials

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead

Unit product cost

A

B

$ 13.40 $ 9.30 $ 10.10

18.50

26.50

32.70

3.40

1.80

1.70

25.60

33.90

25.70

D

$ 9.70

39.50

2.30

36.30

$ 60.90 $ 71.50 $ 70.20 $ 87.80

Additional data concerning these products are listed below.

Products

Grinding minutes per unit

Selling price per unit

Variable selling cost per unit

Monthly demand in units

A

B

D

2.90

3.80

3.40

2.50

$ 75.20 $ 92.60 $ 86.50 $ 103.30

$ 1.30

$ 0.30

$ 2.40

$ 0.70

3,100

3,100

2,100

2,300

The grinding machines are potentially the constraint in the production facility. A total of 52,800 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

How many minutes of grinding machine time would be required to satisfy demand for all four products?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Auditing Basics

Authors: 3G E-Learning

1st Edition

1984624261, 978-1984624260

More Books

Students also viewed these Accounting questions