Bruce Corporation makes four products in a single facility. These products have the following unit product...
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Bruce Corporation makes four 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. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A $ 13.00 18.10 3.00 25.20 59.30 A 2.50 $74.80 $0.90 2,700 Products B $ 8.90 26.10 1.40 33.50 69.90 с $ 9.70 32.30 1.30 25.30 68.60 Products B 3.00 $ 92.20 $ 0.10 2,700 C D $ 9.30 39.10 1.90 35.90 86.20 D 2.10 3.00 $ 86.10 $ 102.90 $ 2.00 1,700 $ 0.30 1,900 The grinding machines are potentially the constraint in the production facility. A total of 23,000 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 to 2 decimal places.) Bruce Corporation makes four 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. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A $ 13.00 18.10 3.00 25.20 59.30 A 2.50 $74.80 $0.90 2,700 Products B $ 8.90 26.10 1.40 33.50 69.90 с $ 9.70 32.30 1.30 25.30 68.60 Products B 3.00 $ 92.20 $ 0.10 2,700 C D $ 9.30 39.10 1.90 35.90 86.20 D 2.10 3.00 $ 86.10 $ 102.90 $ 2.00 1,700 $ 0.30 1,900 The grinding machines are potentially the constraint in the production facility. A total of 23,000 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 to 2 decimal places.)
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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