Products C Direct materials $ 16.90 $ 20.80 $ 13.80 $ 16.50 Direct labor 18.90 22.30 16.70 10.70 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 5.70 6.90 9.40 6.40 28.80 15.70 15.80 17.80 70.30 65.70 55.70 51.40 dditional data concerning these products are listed below. Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.10 1.15 0.70 1.00 $ 85.20 $ 2.65 $ 77.60 $3.35 3,300 $ 74.40 $ 4.10 $ 69.10 $ 4.80 5,300 4,300 3,300 e grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per
Products C Direct materials $ 16.90 $ 20.80 $ 13.80 $ 16.50 Direct labor 18.90 22.30 16.70 10.70 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 5.70 6.90 9.40 6.40 28.80 15.70 15.80 17.80 70.30 65.70 55.70 51.40 dditional data concerning these products are listed below. Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.10 1.15 0.70 1.00 $ 85.20 $ 2.65 $ 77.60 $3.35 3,300 $ 74.40 $ 4.10 $ 69.10 $ 4.80 5,300 4,300 3,300 e grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6
Transcribed Image Text:Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products
C
Direct materials
$ 16.90
$ 20.80
$ 13.80
$ 16.50
Direct labor
18.90
22.30
16.70
10.70
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product cost
5.70
6.90
9.40
6.40
28.80
15.70
15.80
17.80
70.30
65.70
55.70
51.40
Additional data concerning these products are listed below.
Products
В
C
Grinding minutes per unit
Selling price per unit
Variable selling cost per unit
Monthly demand in units
2.10
$ 85.20
$ 2.65
4,300
1.15
0.70
1.00
$ 77.60
$3.35
3,300
$ 74.40
$ 4.10
3,300
$ 69.10
$ 4.80
5,300
The grinding machines are potentially the constraint in the production facility. A total of 10,500 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 2 decimal
places.)
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