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:

Polygraph Principle

The polygraph principle is based on detecting physiological changes in the body as a response to questions, used to infer truthfulness.

Spillover Effect

The spillover effect describes a situation where an event in one context or domain influences events in another context or domain, often extending the impact beyond the initial area.

James-Lange Theory

A theory suggesting emotions result from the perception of bodily reactions to external events.

Two-Factor Theory

A psychological theory, developed by Herzberg, that distinguishes between factors that cause job satisfaction (motivators) and factors that cause dissatisfaction (hygiene factors).