Question
Brown Company makes four products in a single facility. These products have the following unit product costs: Product A B C D Direct materials $15.60
Brown Company makes four products in a single facility. These products have the following unit product costs: Product A B C D Direct materials $15.60 $19.50 $12.50 $15.20 Direct labour 17.60 21.00 15.40 9.40 Variable manufacturing 4.40 5.60 8.10 5.10 overhead Fixed manufacturing 27.50 14.40 14.50 16.50 overhead Unit product cost $65.10 $60.50 $50.50 $46.20 Additional data concerning these products are listed below. Product A B C D Grinding minutes per unit 2.00 1.10 0.70 0.30 Selling price per unit $78.70 $71.10 $67.90 $62.60 Variable selling cost per unit $2.60 $3.10 $2.80 $3.50 Monthly demand in units 3,000 2,000 2,000 4,000 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes is available per month on these machines. Direct labour is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? 00 Multiple Choice 10,800 minutes. 10,500 minutes. O 10,700 minutes. 11,000 minutes
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