FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product cost
Additional data concerning these products are listed below
Multiple Choice
$10.11
$13.52
$5.06
A
$ 13.80
18.90
$17.21
B
$ 9.70
26.90
2.20
2.10
2.70
34.30
26.10
36.70
$62.50 $ 73.10 $71.80 $89.40
B
Grinding minutes per unit
Selling price per unit
4.60
$ 93.00
$ 0.70
Variable selling cost per unit
Monthly demand in units
3,500
The grinding machines are potentially the constraint in the production facility. A total of 44,000 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?
Note: Round your intermediate calculations to 2 decimal places.
3.80
26.00
Products:
A
3.30
$75.68
$ 1.70
3,500
D
$ 10.50 $ 10.10
33.10
39.90
Products
C
3.80
$ 86.90
$ 2.80
2,500
D
2.90
$103.70
$ 1.10
2,700
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Transcribed Image Text:Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below Multiple Choice $10.11 $13.52 $5.06 A $ 13.80 18.90 $17.21 B $ 9.70 26.90 2.20 2.10 2.70 34.30 26.10 36.70 $62.50 $ 73.10 $71.80 $89.40 B Grinding minutes per unit Selling price per unit 4.60 $ 93.00 $ 0.70 Variable selling cost per unit Monthly demand in units 3,500 The grinding machines are potentially the constraint in the production facility. A total of 44,000 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? Note: Round your intermediate calculations to 2 decimal places. 3.80 26.00 Products: A 3.30 $75.68 $ 1.70 3,500 D $ 10.50 $ 10.10 33.10 39.90 Products C 3.80 $ 86.90 $ 2.80 2,500 D 2.90 $103.70 $ 1.10 2,700
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