Brown Corporation Makes Four Products in a Single Facility

question 12

Multiple Choice

Brown Corporation 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 potentially the constraint in the production facility. A total of 10,500 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)$10.60
• B)$21.90
• C)$0
• D)$19.25

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Definitions:

Riding

The act of sitting on and controlling the movement of an animal, typically a horse, or a vehicle, like a bicycle or motorcycle.

Rehearsal

Mnemonic strategy to keep an item in working memory through conscious repetition.

Memory

The cognitive process of encoding, storing, and retrieving information, allowing individuals to learn and adapt from past experiences.

Repetition

The act of doing or saying something again, often for practice, memorization, or emphasis.