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 unitsA$ 14.0019.10.4.00ProductsBD$9.90 $ 10.70 $ 10.3033.3040.1027.102.402.302.9026.20 34.50 26.3036.90$63.30 $ 73.90 $72.60 $90.20A3.50$ 75.80$ 1.903,700Products:B5.00$ 93.20$0.903,700CD3.104.00$ 87.10 $ 103.90$ 3.00$ 1.302,7002,900The grinding machines are potentially the constraint in the production facility. A total of 50,400 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 theexisting grinding machine capacity? (Round your intermediate calculations to 2 decimal places) Grinding minutes per unitSelling price per unitVariable selling cost per unitMonthly demand in unitsMultiple Choice$15.90$9.453.50$75.80$ 1.903,700The grinding machines are potentially the constraint in the production facility. A total of 50,400 minutes are available per month on these machines.Direct labor is a variable cost in this company.$12.705.004.003.10$ 93.20 $ 87.10 $ 103.90Up 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 theexisting grinding machine capacity? (Round your intermediate calculations to 2 decimal places.)$4.73$0.903,700$ 3.002,700$ 1.302,900

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

Answered: Grinding minutes per unit Selling price…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bluebell Ltd is a small company making gadgets. Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited. Information/data: E_bell D_bell Selling Price £150 £190 Variable Costs £110 £120 Direct labour hours per unit 4 6 Hours Direct labour hours available (per week) 900 Hours Maximum demand 100 140 Fixed overheads (per week) £4,000 If products can be sold up-to their max demand. Recommend the best production plan to maximise the use of the limited resource and maximise profit.
Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $36 per unit. Normally, 42,000 units are sold each year. Variable unit cost data on the assembly are as follows: Direct material $10 Direct labor 8 Variable manufacturing overhead 4 The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for $41 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $180,000. Prepare an analysis showing whether Jensen should process the assemblies further. Use a negative sign with answer to only indicate a loss from processing assemblies further; otherwise do not use negative signs with your answers. Sell of Process Further Differential Analysis $ Differential revenue Differential costs Direct material…
Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $ 250 Unit variable cost 100 Total fixed costs 840,000 The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be a. increased by 800 units b. increased by 640 units c. decreased by 640 units d. increased by 400 units
Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $24 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $8.00 Direct labor 12.00 Factory overhead (40% of direct labor) 4.80 Total cost per unit $24.80 If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 25% of the direct labor costs.
A corporation makes several products. Because of a recent lack of skilled workers, the corporation has had a shortage of available labor hours. The following per unit data pertains to the related products: Selling price Variable cost Labor hours required Multiple Choice $12,000 The company only has 1,800 labor hours available next month. The company can only sell 800 units of each product a month. What is the maximum amount of contribution margin that it can generate next month? $19,000 $19,600 LO $30 $20 1 $19,800 ES $80 $40 6 CH $42 $20 2
21. Empresas Tu Pan produces and sells 1,000,000 pounds of bread monthly. Its variable costs are $ 0.50, this includes $ 0.10 of commissions to sellers. Other variable administrative costs total $ 0.15. Your fixed costs per unit produced are $ 0.25 per month and $ 50,000 for administrative expenses per month. The annual fixed cost of this company will be:
Best Company produces three products-A, B, & C-with the following characteristics: A B Selling price per unit $30 100% $17 100% $13 100% Variable cost per unit 17 57% 8 47% 46% Contribution margin per unit $13 43% $9 53% $7 54% Machine hours per unit 3.5 3.5 1.5 The company has only 2,900 machine-hours available each month. Suppose current monthly demand for the products in question #11 is as follows: A: 400 units; B: 600 units; and C: 500 units. If Best Company wishes to maximize its contribution margin, how many of each product will it produce? 500 units of C; 400 units of A; and 214 units of B 500 units of A; 400 units of B; and 200 units of C 600 units of B; 400 units of A; and 500 units of C O 218 units of C; 350 units of B; and 300 units of A
9

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS