Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bruce corporation makes four products in a single

Bruce Corporation makes four products in a single facility. These products have the following unit...

70.2K

Verified Solution

Question

Accounting

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Products
A B C D
Direct materials $ 13.80 $ 9.70 $ 10.50 $ 10.10
Direct labor 18.90 26.90 33.10 39.90
Variable manufacturing overhead 3.80 2.20 2.10 2.70
Fixed manufacturing overhead 26.00 34.30 26.10 36.70
Unit product cost $ 62.50 $ 73.10 $ 71.80 $ 89.40

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 3.30 4.60 3.80 2.90
Selling price per unit $ 75.60 $ 93.00 $ 86.90 $ 103.70
Variable selling cost per unit $ 1.70 $ 0.70 $ 2.80 $ 1.10
Monthly demand in units 3,500 3,500 2,500 2,700

The grinding machines are potentially the constraint in the production facility. A total of 53,200 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

How many minutes of grinding machine time would be required to satisfy demand for all four products?

Multiple Choice

44,980

33,430

9,600

53,200

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students