Your Company makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $26.00 $26.00 $27.00 Variable manufacturing overhead 4.00 Unit cost Direct labor Fixed manufacturing overhead 21.00 Additional data concerning these products are listed below: 15.00 17.00 16.00 5.00 6.00 28.00 23.00 $66.00 $76.00 $72.00 Product A Product B Product C Mixing minutes per unit 3 2 2.5 Selling price per unit $76.00 $90.00 $84.00 Variable selling cost per unit $4.00 $3.00 $5.00 Monthly demand in units 1,500 3,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 18,000 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products?
Your Company makes three products in a single facility. These products have the following unit product costs: Product A Product B Product C Direct material $26.00 $26.00 $27.00 Variable manufacturing overhead 4.00 Unit cost Direct labor Fixed manufacturing overhead 21.00 Additional data concerning these products are listed below: 15.00 17.00 16.00 5.00 6.00 28.00 23.00 $66.00 $76.00 $72.00 Product A Product B Product C Mixing minutes per unit 3 2 2.5 Selling price per unit $76.00 $90.00 $84.00 Variable selling cost per unit $4.00 $3.00 $5.00 Monthly demand in units 1,500 3,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 18,000 minutes is available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Your Company makes three products in a single facility. These
products have the following unit product costs:
Product A Product B Product C
Direct material
$26.00
$26.00
$27.00
Variable manufacturing overhead 4.00
Unit cost
Direct labor
Fixed manufacturing overhead 21.00
Additional data concerning these products are listed below:
15.00
17.00
16.00
5.00
6.00
28.00
23.00
$66.00
$76.00
$72.00
Product A Product B Product C
Mixing minutes per unit
3
2
2.5
Selling price per unit
$76.00
$90.00
$84.00
Variable selling cost per unit
$4.00
$3.00
$5.00
Monthly demand in units
1,500
3,000
4,000
The mixing machines are potentially the constraint in the production
facility. A total of 18,000 minutes is available per month on these
machines. Direct labor is a variable cost in this company.
Required:
How many minutes of mixing machine time would be required to
satisfy demand for all three products?
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