Question

In: Accounting

Master Company makes four products in a single facility. These products have the following unit product...

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

Products
A B C D
Direct materials $ 19.90 $ 15.20 $ 20.80 $ 23.20
Direct labor 12.20 8.70 10.50 7.40
Variable manufacturing overhead $ 1.60 $ 2.10 $ 2.00 $ 2.10
Fixed manufacturing overhead 10.80 11.90 8.80 10.70
Unit product cost 44.50 37.90 42.10 43.40

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 1.20 0.70 0.60 0.60
Selling price per unit $ 59.30 $ 51.70 $ 59.50 $ 55.60
Variable selling cost per unit $ 3.60 $ 1.50 $ 2.20 $ 3.60
Monthly demand in units 4,000 2,000 4,000 2,000

The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

Which product makes the least profitable use of the grinding machines?

  • Product A

  • Product B

  • Product C

  • Product D

Solutions

Expert Solution


Related Solutions

Bacon Company makes four products in a single facility. These products have the following unit product...
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.90 $ 10.80 $ 11.60 $ 11.20 Direct labor 20.00 28.00 34.20 41.00 Variable manufacturing overhead 4.90 3.30 3.20 3.80 Fixed manufacturing overhead 27.10 35.40 27.20 37.80 Unit product cost $ 66.90 $ 77.50 $ 76.20 $ 93.80 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bacon Company makes four products in a single facility. These products have the following unit product...
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.85 $ 10.75 $ 11.55 $ 11.15 Direct labor 19.95 27.95 34.15 40.95 Variable manufacturing overhead 4.85 3.25 3.15 3.75 Fixed manufacturing overhead 27.05 35.35 27.15 37.75 Unit product cost $ 66.70 $ 77.30 $ 76.00 $ 93.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bacon Company makes four products in a single facility. These products have the following unit product...
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.30 $ 10.20 $ 11.00 $ 10.60 Direct labor 19.40 27.40 33.60 40.40 Variable manufacturing overhead 4.30 2.70 2.60 3.20 Fixed manufacturing overhead 26.50 34.80 26.60 37.20 Unit product cost $ 64.50 $ 75.10 $ 73.80 $ 91.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bacon Company makes four products in a single facility. These products have the following unit product...
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.45 $ 10.35 $ 11.15 $ 10.75 Direct labor 19.55 27.55 33.75 40.55 Variable manufacturing overhead 4.45 2.85 2.75 3.35 Fixed manufacturing overhead 26.65 34.95 26.75 37.35 Unit product cost $ 65.10 $ 75.70 $ 74.40 $ 92.00 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bruce Corporation makes four products in a single facility. These products have the following unit product...
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 16.30 $ 20.20 $ 13.20 $ 15.90 Direct labor 18.30 21.70 16.10 10.10 Variable manufacturing overhead 5.10 6.30 8.80 5.80 Fixed manufacturing overhead 28.20 15.10 15.20 17.20 Unit product cost $ 67.90 $ 63.30 $ 53.30 $ 49.00 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bruce Corporation makes four products in a single facility. These products have the following unit product...
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 13.10 $ 9.00 $ 9.80 $ 9.40 Direct labor 18.20 26.20 32.40 39.20 Variable manufacturing overhead 3.10 1.50 1.40 2.00 Fixed manufacturing overhead 25.30 33.60 25.40 36.00 Unit product cost 59.70 70.30 69.00 86.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 2.60 3.20 3.10 2.20...
Bruce Corporation makes four products in a single facility. These products have the following unit product...
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 19.90 $ 15.20 $ 20.80 $ 23.20 Direct labor 12.20 8.70 10.50 7.40 Variable manufacturing overhead 1.60 2.10 2.00 2.10 Fixed manufacturing overhead 10.80 11.90 8.80 10.70 Unit product cost $ 44.50 $ 37.90 $ 42.10 $ 43.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit...
Bruce Corporation makes four products in a single facility. These products have the following unit product...
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.80 $ 10.70 $ 11.50 $ 11.10 Direct labor 19.90 27.90 34.10 40.90 Variable manufacturing overhead 4.80 3.20 3.10 3.70 Fixed manufacturing overhead 27.00 35.30 27.10 37.70 Unit product cost 66.50 77.10 75.80 93.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.30 5.80 4.80 3.90...
Bruce Corporation makes four products in a single facility. These products have the following unit product...
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.60 $ 10.50 $ 11.30 $ 10.90 Direct labor 19.70 27.70 33.90 40.70 Variable manufacturing overhead 4.60 3.00 2.90 3.50 Fixed manufacturing overhead 26.80 35.10 26.90 37.50 Unit product cost 65.70 76.30 75.00 92.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.10 5.60 4.60 3.70...
Brown Corporation makes four products in a single facility. These products have the following unit product...
Brown Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D   Direct materials $13.10 $9.00 $9.80 $9.40   Direct labor 18.20 26.20 32.40 39.20   Variable manufacturing overhead 3.10 1.50 1.40 2.00   Fixed manufacturing overhead 25.30 33.60 25.40 36.00   Unit product cost $59.70 $70.30 $69.00 $86.60 Additional data concerning these products are listed below. Products A B C D   Grinding minutes per unit 2.60 3.20 3.10 2.20   Selling price per unit...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT