Bacon Company Makes Four Products in a Single Facility

question 119

Multiple Choice

Bacon Company makes four products in a single facility.These products have the following unit product costs:
Additional data concerning these products are listed below.

The grinding machines are the constraint in the production facility.A total of 53,600 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 off to the nearest whole cent. )

• A) $35.90.
• B) $0.00.
• C) $8.58.
• D) $11.60.

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Definitions:

Sanitation

Measures used to maintain cleanliness and prevent disease, including the disposal of waste and the provision of clean drinking water.

HIPAA-Health Insurance Portability And Accountability Act

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American Health Information Management Association

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Controlled Substances Act

A statute establishing federal U.S. drug policy under which the manufacture, importation, possession, use, and distribution of certain substances are regulated.