Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B Direct materials $ 14.30 $ 11.00 $ 10.0 10.20 Direct labor 19.40 27.40 33.00 40.40 Variable manufacturing overhead 4.30 2.70 2.60 3.20 Foced manufacturing overhead 37.20 28.50 34.80 20.00 Unit product cost $ 04.50 $ 75.10 $ 73.80 $ 01.40 Additional data conoeming these products are listed below. Products B D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit 76.10 93.50 87.40 104.20 Variable selling cost per unit 2.20 1.20 3.30 1.60 Monthly demand in units 4,000 4,000 3,000 2,000 The grinding machines are the constraint in the production facility. A total of 53,00 minutes are available per month on these machines. birect labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Product A. Product B. Product C. Product D.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bacon Company makes four products in a single facility. These products have the following unit
product costs:
Products
A
в
D
Direct materials
24
14.30
$
10.20
$ 11.00
24
10.60
Direct labor
19.40
27.40
33.80
40.40
Variable manufacturing overhead
4.30
2.70
2.80
3.20
Fixed manufacturing overhead
26.50
34.80
26.60
37.20
Unit product cost
$| 84.50
$ 75.10
$| 73.80
$ 91.40
Additional data conceming these products are listed below.
Products
A
B
D
Grinding minutes per unit
3.80
5.30
4.30
3.40
Selling price per unit
76.10
93.50
87.40
104.20
Variable selling cost per unit
2.20
1.20
3.30
1.80
Monthly demand in units
4,000
4,000
3,000
2,000
The grinding machines are the constraint in the production facility. A total of 53,600 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?
Product A.
Product B.
Product C.
Product D.
Transcribed Image Text:Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A в D Direct materials 24 14.30 $ 10.20 $ 11.00 24 10.60 Direct labor 19.40 27.40 33.80 40.40 Variable manufacturing overhead 4.30 2.70 2.80 3.20 Fixed manufacturing overhead 26.50 34.80 26.60 37.20 Unit product cost $| 84.50 $ 75.10 $| 73.80 $ 91.40 Additional data conceming these products are listed below. Products A B D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit 76.10 93.50 87.40 104.20 Variable selling cost per unit 2.20 1.20 3.30 1.80 Monthly demand in units 4,000 4,000 3,000 2,000 The grinding machines are the constraint in the production facility. A total of 53,600 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? Product A. Product B. Product C. Product D.
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