Glocker Company makes three products in a single facility. These products have t

Question

Glocker Company makes three products in a single facility. These products have the following unit product costs Product Direct materials Direct labor Variable manufacturing 32.80 49.30 $ 55.70 $ 20.20 $ 22.80 13.60 $1.20 $ 0.60 $ 0.90 overhead Fixed manufacturing overhead 13.50 9.10 9.70 Unit product cost $67.70 $81.80 $79.90 Additional data concerning these products are listed below Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 1.20 58.00 $ 80.40 $60 $ 1.10 3,300 0.20 73.90 2.30 1,300 1.20 2,000 The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company

Explanation / Answer

A B C Selling price 58 80.4 73.9 Variable costs Direct material 32.8 49.3 55.7 Direct labor 20.2 22.8 13.6 Variable overhead 1.2 0.6 0.9 Variable selling costs 0.6 1.1 2.3 Contribution 3.2 6.6 1.4 Units required 2000 3300 1300 Mixing minutes 1.2 1.2 0.2 Total minutes required 2400 3960 260 6620 Contribution per mixing minute Contribution/Mixing minute 2.67 5.50 7.00 Since the contribution per mixing minute is more for Product A and less for Product A Maximum of Product C,B and then A are manufactured Product Opening availability Requirement Closing availability Units produced C 6520 260 6260 1300 B 6260 3960 2300 3300 A 2300 2300 0 1917 Total minutes required 6620 A B C Total units to be produced 1300 3300 1917

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.