Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products ABCDDirect materials$19.90$15.20$20.80$23.20Direct labor 12.20 8.70 10.50 7.40Variable manufacturing overhead 1.60 2.10 2.00 2.10Fixed manufacturing overhead? 10.80? 11.90? 8.80? 10.70Unit product cost$44.50$37.90$42.10$43.40Additional data concerning these products are listed below. Products ABCDGrinding minutes per unit 1.20 0.70 0.60 0.60Selling price per unit$59.30$51.70$59.50$55.60Variable selling cost per unit$3.60$1.50$2.20$3.60Monthly demand in units 4,000 2,000 4,000 2,000The grinding machines are potentially the constraint in the production facility. A total of 9,000 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 the existing grinding machine capacity? (Round your intermediate calculations and final answer to 2 decimal places.)
A. $0.00
B. $18.33
C. $12.20
D. $19.30
Answer: B
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Participative budgeting:
a. Results in managers being less apt to meet or beat their budget projections. b. Motivates managers to meet budget numbers because they set them. c. Describes the budget meetings in which managers participate. d. Leaves room to blame top management in the event budget numbers are not met.
Abnormal spoilage is
a. Accounted for as a product cost. b. Spoilage that is in excess of planned. c. Spoilage that is forecasted or planned. d. Debited to cost of goods sold.
Carteret Inc Carteret Inc manufactures hammocks under various brand names. The company sells most of its hammocks in the second quarter of each year. Their production budget for the second quarter shows the following number of hammocks needs to be produced: April 6,000 units May 10,000 units June 15,000 units Each unit requires 30 feet of cotton rope cord which costs $.50 per foot. The company
has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. In addition, each hammock requires 45 minutes of direct labor for assembly and inspection at a cost of $.25 per minute. The company currently applies manufacturing overhead to production at the rate of $8 per direct labor hour. Refer to the Carteret Inc information above. The total cost of direct labor and manufacturing overhead for the month of May is: A) $192,500 B) $ 82,500 C) $172,500 D) $168,750
Which of the following distributions is most often used to estimate service times?
A) negative exponential B) normal C) Poisson D) Erlang E) beta