Bruce Corporation makes four products in a single facility. These products have the following unit product costs:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadUnit product costAdditional data concerning these products are listed below.Grinding minutes per unitSelling price per unitVariable selling cost per unitMonthly demand in unitsProductsA$14.80CB$10.70 $11.5027.903.2019.904.8027.0035.30$ 66.50 $ 77.10 $75.8034.103.1027.10ProductsAB4.305.80$76.60 $94.00$2.70 $ 1.704,5004,500D$ 11.1040.903.7037.70$93.40CD4.803.90$87.90 $ 104.70$ 3.80 $ 2.103,5002,500The grinding machines are potentially the constraint in the production facility. A total of 71,400 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 existinggrinding machine capacity? (Round your intermediate calculations to 2 decimal places.)

Contribution margin per Minute is based on Contribution margin per unit and Grinding minutes per…

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. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A $14.80 19.90 4.80 27.00 $66.50 A 4.30 $76.60 $ 2.70 4,500 Products B C D $ 10.70 $11.50 $ 11.10 27.90 40.90 3.20 3.70 35.30 34.10 3.10 27.10 $77.10 $ 75.80 Products B 5.80 $94.00 $ 1.70 4,500 37.70 $ 93.40 C D 4.80 3.90 $87.90 $ 104.70 $ 2.10 $ 3.80 3,500 2,500 The grinding machines are potentially the constraint in the production facility. A total of 71,400 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

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. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A $14.80 19.90 4.80 27.00 $66.50 A 4.30 $76.60 $ 2.70 4,500 Products B C D $ 10.70 $11.50 $ 11.10 27.90 40.90 3.20 3.70 35.30 34.10 3.10 27.10 $77.10 $ 75.80 Products B 5.80 $94.00 $ 1.70 4,500 37.70 $ 93.40 C D 4.80 3.90 $87.90 $ 104.70 $ 2.10 $ 3.80 3,500 2,500 The grinding machines are potentially the constraint in the production facility. A total of 71,400 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Glover Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 32.80 $ 49.30 $ 55.70 Direct labor 20.20 22.80 13.60 Variable manufacturing overhead 1.20 0.60 0.90 Fixed manufacturing overhead 13.50 9.10 9.70 Unit product cost $ 67.70 $ 81.80 $ 79.90 Additional data concerning these products are listed below. Product A B C Mixing minutes per unit 1.20 1.20 0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ 0.60 $ 1.10 $ 2.30 Monthly demand in units 2,000 3,300 1,300 The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of…
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 units
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 19.90 $ 15.20 $ 20.80 $ 23.20 Direct labor 12.20 8.70 10.50 7.40 Variable manufacturing overhead $ 1.60 $ 2.10 $ 2.00 $ 2.10 Fixed manufacturing overhead 10.80 11.90 8.80 10.70 Unit product cost 44.50 37.90 42.10 43.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 1.20 0.70 0.60 0.60 Selling price per unit $ 59.30 $ 51.70 $ 59.50 $ 55.60 Variable selling cost per unit $ 3.60 $ 1.50 $ 2.20 $ 3.60 Monthly demand in units 4,000 2,000 4,000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 9,000 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…
Given the following information, determine the product cost of one unit: Direct Materials = $60; Direct labor = $10; Apply Overhead based on $2 per Direct Labor hour; Direct labor hours is 4 hours per unit. a. $70 per unit b. $80 per unit c. $78 per unit d. $85 per unit Contribution margin is sales less: a. Fixed overhead and fixed selling and administrative expenses b. Variable Cost of goods sold and variable selling & administrative expenses c. Variable selling and administrative expemses and Fixed selling and administrative expenses d. variable cost of goods sold An investment generates an operating income of $100,000, and the average operating assets are $400,000. What is the return on the investment? a. 100% b. 75% c. 25% d. 20%
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.50 $ 4.00 $ 1.60 $ 4.00 $ 3.50 $ 2.20 $ 1.20 $ 0.45 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) Total manufacturing overhead cost Manufacturing overhead per unit
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ABC Company makes four products in a single facility. Data concerning these products appear below: Product Selling price per unit Variable manufacturing cost A C P28.20 P26.60 D P20.40 P24.70 per unit Variable selling cost per unit Milling machine minutes per P11.40 P7.70 P6.30 P9.30 P3.40 P1.50 P3.50 P1.80 unit 2.60 1.40 0.70 0.90 Monthly demand in units The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. 1,000 3,000 4,000 1,000 8)Which product makes the LEAST profitable use of the milling machines? a. Product A c. Product C d. Product D b. Product B 9) Which product makes the MOST profitable use of the milling machines? a. Product A b. Product B c. Product C d. Product D 10) Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.)…
B. Find the cost of a product Different costs are presented below Direct materials $ 5.00 per unit Indirect materials $ 2.00 per unit Direct labor $ 10.00 per hour Indirect labor $ 3.00 per hour Other variable indirect costs $ 6.00 per hour Other fixed indirect costs $ 10.00 per unit Commissions to sellers $ 4.00 per unit Variable administrative costs $ 6.00 per unit Fixed Administrative Costs $ 10.00 per unit 1. Determine the cost of making each unit. When it says hourly, it refers to hours of direct labor. It takes 15 minutes for the company to make each product. .
Redhead Equipment Inc. manufactures three products. Information about the selling prices and unit costs for the three products is below: Product A Selling price $90.00 $60.00 $110.00 Variable costs $52.00 $24.00 $63.00 Fixed costs $22.00 $8.00 $25.00 Compression machine time 11 min. 6 min. 13 min. Fixed costs are applied based on direct labour hours. Demand for the three products exceeds the company's current production capacity. The compression machine is the constraint, with just 2,500 minutes of compression machine time available this week. Required: a. Given the compression machine constraint, which product should be emphasized? Be sure to show your calculations to support your recommendation Activa Go to P