Need complete working of step Question No. 7: Production under Constrained ResourcesGlover Company makes three products in a single facility. These products have the following unit productDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadUnit product costAdditional data concerning these products are listed below.Mixing minutes per unitSelling price per unitVariable selling cost per unitMonthly demand in unitsAProduct$$B$ 35.10 $ 51.60 $ 58.0025.1015.9022.502.301.701.607.808.40$ 72.10 $ 86.20 $AProductBC81.00 $2.90 $31000.30 0.20103.40 $ 96.903.40 S3.2044002400The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes aravailable per month on these machines. Direct labor is a variable cost in this company.Required:83.90CCa. 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?ABOptimal productionUp to how much should the company be willing to pay for one additional hour of mixing machinetime if the company has made the best use of the existing mixing machine capacity?

a. Total number of minutes of mixing time be required to satisfy demand for all three products…

Question No. 7: Production under Constrained Resources Glover Company makes three 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. C. A $ 35.10 $ 22.50 2.30 12.20 C 51.60 $ 58.00 25.10 15.90 1.70 1.60 7.80 8.40 $72.10 $ 86.20 $ 83.90 Product A $ B Product B 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 C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

Question No. 7: Production under Constrained Resources Glover Company makes three 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. C. A $ 35.10 $ 22.50 2.30 12.20 C 51.60 $ 58.00 25.10 15.90 1.70 1.60 7.80 8.40 $72.10 $ 86.20 $ 83.90 Product A $ B Product B 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 C Optimal production Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Question No. 7: Production under Constrained Resources
Glover Company makes three products in a single facility. These products have the following unit product
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product cost
Additional data concerning these products are listed below.
Mixing minutes per unit
Selling price per unit
Variable selling cost per unit
Monthly demand in units
A
Product
$
$
B
$ 35.10 $ 51.60 $ 58.00
25.10
15.90
22.50
2.30
1.70
1.60
7.80
8.40
$ 72.10 $ 86.20 $
A
Product
B
C
81.00 $
2.90 $
3100
0.30 0.20
103.40 $ 96.90
3.40 S
3.20
4400
2400
The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes ar
available per month on these machines. Direct labor is a variable cost in this company.
Required:
83.90
C
C
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
Optimal production
Up to how much should the company be willing to pay for one additional hour of mixing machine
time if the company has made the best use of the existing mixing machine capacity?

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