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 Selling price per unit $78.70 $71.10 Variable selling cost per unit $2.60 Monthly demand in units 3,000 $3.10 2,000 0.70 $67.90 $2.80 $3.50 -2,000 4,000 0.30 $62.60 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? Variable selling cost per unit Monthly demand in units $2.60 $3.10 $2.80 $3.50 3,000 2,000 2,000 4,000 Help Save & Exit 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? Multiple Choice 10,800 minutes. 11,000 minutes. 10,700 minutes. 10,500 minutes
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