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 $ 35.20 $ 51.70 58.10 $ 22.60 25.20 $ 16.00 Variable manufacturing overhead $ 2.40 $ 1.80 1.70 8.50 Direct materials Direct labor Fixed manufacturing overhead 12.30 7.90 Unit product cost $72.50 $86.60 $84.30 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 0.90 0.30 $ 82.00 $104.40 $ 97.90 $ 3.00 $ 3.50 $ 3.30 2,500 3,200 4,500 The mixing machines are potentially the constraint in the production facility. A total of 8,540 minutes are available per month on these machines. Direct labor is a variable cost in this company

Explanation / Answer

A.

Total time required for all products=3840+4050+750

=8,640

B.

Optimal production plan:

*Minutes left after completing production of product B and C:

=8540-750-4050

=3740 minutes

Production possible of product A=3740/1.20

=3116.6666667 units or 3117 units

3. Company should be willing to pay up to the contribution margin per minute for marginal job, which is $15.67

A B C Mixing minutes per unit 1.20 0.90 0.30 Monthly demand in units 3200 4500 2500 Total minutes required 3840 4050 750

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

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