8.)Bruce Corporation makes four products in a single facility. These products have the following unit...
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Accounting
8.)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
Selling price per unit
$
76.60
$
94.00
$
87.90
$
104.70
Variable selling cost per unit
$
2.70
$
1.70
$
3.80
$
2.10
Monthly demand in units
4,500
4,500
3,500
2,500
The grinding machines are potentially the constraint in the production facility. A total of 71,400 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? (Round your intermediate calculations to 2 decimal places.)
9.)
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X
Product Y
Product Z
Units produced
2,300
2,800
3,800
Per unit sales value at split-off
$
18.00
$
26.00
$
23.00
Added processing costs per unit
$
2.00
$
4.00
$
4.00
Per unit sales value if processed further
$
27.00
$
27.00
$
32.00
The cost of the joint raw material input is $86,000. Which of the products should be processed beyond the split-off point?
Product X
Product Y
Product Z
A)
yes
yes
no
B)
yes
no
yes
C)
no
yes
no
D)
no
yes
yes
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