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Glocker Company makes three products in a single facility. These products have the following unit product costs Product A B C Direct materials $ 34.80
Glocker Company makes three products in a single facility. These products have the following unit product costs |
Product | |||||||||
A | B | C | |||||||
Direct materials | $ | 34.80 | $ | 51.30 | $ | 57.70 | |||
Direct labor | $ | 22.20 | $ | 24.80 | $ | 15.60 | |||
Variable manufacturing overhead | $ | 2.00 | $ | 1.40 | $ | 1.30 | |||
Fixed manufacturing overhead | 11.90 | 7.50 | 8.10 | ||||||
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Unit product cost | $70.90 | $85.00 | $82.70 | ||||||
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Additional data concerning these products are listed below. | |||||||||
Mixing minutes per unit | 1.20 | 1.00 | 0.30 | ||||||
Selling price per unit | $ | 78.00 | $ | 100.40 | $ | 93.90 | |||
Variable selling cost per unit | $ | 2.60 | $ | 3.10 | $ | 2.90 | |||
Monthly demand in units | 2,800 | 4,100 | 2,100 | ||||||
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The mixing machines are potentially the constraint in the production facility. A total of 7,990 minutes are available per month on these machines. Direct labor is a variable cost in this company. |
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