Question: Holvey Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 57.00 $
| Holvey Company makes three products in a single facility. Data concerning these products follow: |
| Product | |||||||||
| A | B | C | |||||||
| Selling price per unit | $ | 57.00 | $ | 79.40 | $ | 72.90 | |||
| Direct materials | $ | 32.70 | $ | 49.20 | $ | 55.60 | |||
| Direct labor | $ | 20.10 | $ | 22.70 | $ | 13.50 | |||
| Variable manufacturing overhead | $ | 1.10 | $ | 0.50 | $ | 1.00 | |||
| Variable selling cost per unit | $ | .50 | $ | 1.00 | $ | 2.40 | |||
| Mixing minutes per unit | 1.10 | 1.60 | 0.10 | ||||||
| Monthly demand in units | 1,900 | 3,200 | 1,200 | ||||||
| The mixing machines are potentially the constraint in the production facility. A total of 7,230 minutes are available per month on these machines. Direct labor is a variable cost in this company. |
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