Question Glover Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 35.10 $ 51.60 $ 58.00 Direct labor 22.50 25.10 15.90 Variable manufacturing overhead 2.30 1.70 1.60 Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. A B C Mixing minutes per unit 1.30 0.80 0.20 Selling price per unit $ 81.00 $ 103.40 $ 96.90 Variable selling cost per unit $ 2.90 $ 3.40 $ 3.20 Monthly demand in units 3100 4400 2400 The mixing machines are potentially the constraint in the production facility. A total of 7930 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 be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? A B C
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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 $ 35.10 $ 51.60 $ 58.00
Direct labor 22.50 25.10 15.90
Variable manufacturing
Fixed manufacturing overhead
Unit product cost
Additional data concerning these products are listed below.
A B C
Mixing minutes per unit 1.30 0.80 0.20
Selling price per unit $ 81.00 $ 103.40 $ 96.90
Variable selling cost per unit $ 2.90 $ 3.40 $ 3.20
Monthly demand in units 3100 4400 2400
The mixing machines are potentially the constraint in the production facility. A total of 7930 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 be required to satisfy demand for all three products?
b. How much of each product should be produced to maximize net operating income?
A B C
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