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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $

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

Products
A B C D
Direct materials $ 16.50 $ 20.40 $ 13.40 $ 16.10
Direct labor 18.50 21.90 16.30 10.30
Variable manufacturing overhead 5.30 6.50 9.00 6.00
Fixed manufacturing overhead 28.40 15.30 15.40 17.40
Unit product cost 68.70 64.10 54.10 49.80

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 2.45 1.55 1.15 0.75
Selling price per unit $ 83.20 $ 75.60 $ 72.40 $ 67.10
Variable selling cost per unit $ 3.50 $ 4.00 $ 3.70 $ 4.40
Monthly demand in units 3,900 2,900 2,900 4,900

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-09-13

Multiple Choice

Product C

Product D

Product A

Product B

Two products, QI and VH, emerge from a joint process. Product QI has been allocated $27,300 of the total joint costs of $48,000. A total of 2,200 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,200 and then sold for $13 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Multiple Choice

$18,400

$(5,800)

($21,500)

($33,900)

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

Products
A B C D
Direct materials $ 14.40 $ 10.30 $ 11.10 $ 10.70
Direct labor 19.50 27.50 33.70 40.50
Variable manufacturing overhead 4.40 2.80 2.70 3.30
Fixed manufacturing overhead 26.60 34.90 26.70 37.30
Unit product cost 64.90 75.50 74.20 91.80

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 3.90 5.40 4.40 3.50
Selling price per unit $ 76.20 $ 93.60 $ 87.50 $ 104.30
Variable selling cost per unit $ 2.30 $ 1.30 $ 3.40 $ 1.70
Monthly demand in units 4,100 4,100 3,100 2,100

The grinding machines are potentially the constraint in the production facility. A total of 58,900 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 to 2 decimal places.) 1_04_2014_QC_58425, 11_17_2014_QC_58425,Garrison 16e Rechecks 2017-09-13

Multiple Choice

$8.32

$11.27

$13.74

$4.16

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