Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Fixed manufacturing overhead Variable 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 Products A B C D $17.50 $ 21.40 $ 14.40 $ 17.10 19.50 22.90 17.30 11.30 6.30 7.50 10.00 29.40 16.30 16.40 $ 72.70 $ 68.10 $ 58.10 7.00 18.40 $ 53.80 Products A B C 2.40 $ 88.20 $3.25 4,900 1.45 $ 80.60 $3.95 3,900 1.00 $ 77.40 $ 4.70 D 1.30 $ 72.10 $ 5.40 3,900 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Product B ما

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Products
A
B
C
$ 17.50
$ 21.40
$ 14.40
19.50
22.90
17.30
D
$ 17.10
11.30
6.30
7.50
10.00
29.40
16.30
16.40
7.00
18.40
$ 72.70
$ 68.10 $ 58.10
$ 53.80
Products
Grinding minutes per unit
Selling price per unit
Variable selling cost per unit
Monthly demand in units
A
B
C
D
2.40
1.45
1.00
$ 88.20
$3.25
4,900
$ 80.60
$3.95
3,900
$ 77.40
1.30
$ 72.10
$ 4.70
3,900
$5.40
5,900
The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available p
on these machines.
Direct labor is a variable cost in this company.
Which product makes the MOST profitable use of the grinding machines?
Note: Round your intermediate calculations to 2 decimal places.
Multiple Choice
Product B
Transcribed Image Text: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. Products A B C $ 17.50 $ 21.40 $ 14.40 19.50 22.90 17.30 D $ 17.10 11.30 6.30 7.50 10.00 29.40 16.30 16.40 7.00 18.40 $ 72.70 $ 68.10 $ 58.10 $ 53.80 Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A B C D 2.40 1.45 1.00 $ 88.20 $3.25 4,900 $ 80.60 $3.95 3,900 $ 77.40 1.30 $ 72.10 $ 4.70 3,900 $5.40 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available p on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Product B
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