Bruce Corporation makes four products in a single facility. These products have
ID: 2593912 • Letter: B
Question
Bruce Corporation makes four products in a single facility. These products have the following unit product costs Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $16.80 $20.70 $13.7e $16.40 18.80 22.20 16.60 1.60 5.60 6.80 9.30 6.30 28.7 15.60 15.70 17.70 69.90 65.3 55.3 51.00 Additional data concerning these products are listed below Product:s Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.05 1.10 .65 0.95 $84.70 $77.10 $73.90 $68.60 $2.55 $ 3.25 $ 4.00 4.70 4,200 3,200 3,200 5,200 The grinding machines are potentully the constraint in the production facility, A tétal of 10.500 minutes are available per month on these machines Direct labor is a variable cost in this company Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.)Explanation / Answer
ans) A B C D
Direct materials...................................... 16.8 20.7 13.7 16.4
Direct labor............................................. 18.8 22.2 16.6 10.6
Variable manufacturing overhead........... 5.6 6.8 9.3 6.3
Variable selling cost per unit 2.55 3.25 4.0 4.7
Variable cost per unit.............................. 43.75 52.95 43.6 38
Selling price per unit............................................... 84.7 77.1 73.9 68.6
Variable cost per unit................................................43.75 52.95 43.6 38
Contribution margin per unit (a)............................... 40.95 24.15 30.3 30.6
Amount of the constrained resource
required toproduce one unit (b)............................... 2.05 1.1 0.65 0.95
Contribution margin per unit of the
constrainedresource (a) ÷ (b)................................. 19.9 21.9 46.6 32.2
Ranking.............................................................. 4 3 1 2
Product C makes the most profitable use of thr grinding machine.
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