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5.) Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials
5.)
Broze Company makes four products in a single facility. These products have the following unit product costs: |
Products | ||||
A | B | C | D | |
Direct materials | $13.50 | $9.40 | $10.20 | $9.80 |
Direct labor | 18.60 | 26.60 | 32.80 | 39.60 |
Variable manufacturing overhead | 3.50 | 1.90 | 1.80 | 2.40 |
Fixed manufacturing overhead | 25.70 | 34.00 | 25.80 | 36.40 |
Unit product cost | $61.30 | $71.90 | $70.60 | $88.20 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 3.00 | 4.00 | 3.50 | 2.60 |
Selling price per unit | $75.30 | $92.70 | $86.60 | $103.40 |
Variable selling cost per unit | $1.40 | $.40 | $2.50 | $.80 |
Monthly demand in units | 3,200 | 3,200 | 2,200 | 2,400 |
The grinding machines are potentially the constraint in the production facility. A total of 52,900 minutes are available per month on these machines. |
Direct labor is a variable cost in this company. |
How many minutes of grinding machine time would be required to satisfy demand for all four products? |
7,800
52,900
26,740
36,340
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