Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Broyles Company makes four products in a single facility These products have the following...

Broyles Company makes four products in a single facility These products have the following unit product costs Product A B C D Direct Materials 1070 540 510 720 Direct Labor

Broyles Company makes four products in a single facility These products have the following unit product costs:

 

Product

A B C D

Direct Materials 1070 540 510 720

Direct Labor 1910 2140 2900 3440

Variable Manufacturing overhead 120 150 180 160

Fixed Manufacturing overhead 2240 1600 1500 1760

Unit product cost 5340 4430 5090 6080

 

Additional data concerning these products are listed below:

 

Product

A B C D

Grinding minutes per unit 220 120 170 180

Selling price per unit 6540 5850 7070 7620

Variable Selling cost per unit 360 380 200 340

Monthly demand in units 1,000 4,000 1,000 4,000

 

The grinding machines are potentially the constraint in the production facility A total of 14,400 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 hour of grinding machine time if the company has made the best use of the existing grinding machine capacity?

 

 

 

 

Apr 29 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions