Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. A $ 13.00 18.10 3.00 25.20 Products B C $8.90 $9.70 26.10 32.30 1.40 1.30. 1.90 33.50 25.30 35.90 $59.30 $ 69.90 $ 68.60 $ 86.20 A 2.50 $ 74.80 $0.90 2,700 Products D $9.30 39.10 B Grinding minutes per unit Selling price per unit 3.00 $ 92.20 $ 0.10 Variable selling cost per unit Monthly demand in units 2,700 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. C 3.00 D 2.10 $ 86.10 $ 102.90 $2.00 $ 0.30 1,900 1,700 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 he existing grinding machine capacity?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product cost
Additional data concerning these products are listed below.
Multiple Choice
A
$ 13.00
18.10
3.00
25.20
$6.80
B
C
D
$8.90 $9.70 $9.30
26.10
32.30
39.10
1.40.
1.90
33.50 25.30
35.90
$59.30 $ 69.90 $ 68.60 $ 86.20
Products
A
2.50
$ 74.80
$0.90
2,700
B
Grinding minutes per unit
Selling price per unit
3.00
$ 92.20
$ 0.10
Variable selling cost per unit
Monthly demand in units
2,700
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
he existing grinding machine capacity?
ote: Round your intermediate calculations to 2 decimal places.
1.30.
Products
C
D
2.10
3.00
$ 86.10 $ 102.901
$2.00
$ 0.30
1,700
1,900
Transcribed Image Text:Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Multiple Choice A $ 13.00 18.10 3.00 25.20 $6.80 B C D $8.90 $9.70 $9.30 26.10 32.30 39.10 1.40. 1.90 33.50 25.30 35.90 $59.30 $ 69.90 $ 68.60 $ 86.20 Products A 2.50 $ 74.80 $0.90 2,700 B Grinding minutes per unit Selling price per unit 3.00 $ 92.20 $ 0.10 Variable selling cost per unit Monthly demand in units 2,700 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 he existing grinding machine capacity? ote: Round your intermediate calculations to 2 decimal places. 1.30. Products C D 2.10 3.00 $ 86.10 $ 102.901 $2.00 $ 0.30 1,700 1,900
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