B C D Direct materials $ 13.00 $ 8.90 $ 9.70 $ 9.30 Direct labor 18.10 26.10 32.30 39.10 Variable manufacturing overhead $ 3.00 $ 1.40 $ 1.30 $ 1.90 Fixed manufacturing overhead 25.20 33.50 25.30 35.90 Unit product cost 59.30 69.90 68.60 86.20 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 2.50 3.00 3.00 2.10 Selling price per unit $ 74.80 $ 92.20 $ 86.10 $ 102.90 Variable selling cost per unit $ 0.90 $ 0.10 $ 2.00 $ 0.30 Monthly demand in units 2,700 2,700 1,700 1,900
B C D Direct materials $ 13.00 $ 8.90 $ 9.70 $ 9.30 Direct labor 18.10 26.10 32.30 39.10 Variable manufacturing overhead $ 3.00 $ 1.40 $ 1.30 $ 1.90 Fixed manufacturing overhead 25.20 33.50 25.30 35.90 Unit product cost 59.30 69.90 68.60 86.20 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 2.50 3.00 3.00 2.10 Selling price per unit $ 74.80 $ 92.20 $ 86.10 $ 102.90 Variable selling cost per unit $ 0.90 $ 0.10 $ 2.00 $ 0.30 Monthly demand in units 2,700 2,700 1,700 1,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
| Products | ||||
|---|---|---|---|---|
| A | B | C | D | |
| Direct materials | $ 13.00 | $ 8.90 | $ 9.70 | $ 9.30 |
| Direct labor | 18.10 | 26.10 | 32.30 | 39.10 |
| Variable manufacturing |
$ 3.00 | $ 1.40 | $ 1.30 | $ 1.90 |
| Fixed manufacturing overhead | 25.20 | 33.50 | 25.30 | 35.90 |
| Unit product cost | 59.30 | 69.90 | 68.60 | 86.20 |
Additional data concerning these products are listed below.
| Products | ||||
|---|---|---|---|---|
| A | B | C | D | |
| Grinding minutes per unit | 2.50 | 3.00 | 3.00 | 2.10 |
| Selling price per unit | $ 74.80 | $ 92.20 | $ 86.10 | $ 102.90 |
| Variable selling cost per unit | $ 0.90 | $ 0.10 | $ 2.00 | $ 0.30 |
| Monthly demand in units | 2,700 | 2,700 | 1,700 | 1,900 |
The grinding machines are potentially the constraint in the production facility. A total of 23,000 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.)
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