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Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $14.60
Broze Company makes four products in a single facility. These products have the following unit product costs: |
Products | ||||
A | B | C | D | |
Direct materials | $14.60 | $10.50 | $11.30 | $10.90 |
Direct labor | 19.70 | 27.70 | 33.90 | 40.70 |
Variable manufacturing overhead | 4.60 | 3.00 | 2.90 | 3.50 |
Fixed manufacturing overhead | 26.80 | 35.10 | 26.90 | 37.50 |
Unit product cost | $65.70 | $76.30 | $75.00 | $92.60 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 4.10 | 5.60 | 4.60 | 3.70 |
Selling price per unit | $76.40 | $93.80 | $87.70 | $104.50 |
Variable selling cost per unit | $2.50 | $1.50 | $3.60 | $1.90 |
Monthly demand in units | 4,300 | 4,300 | 3,300 | 2,300 |
The grinding machines are potentially the constraint in the production facility. A total of 53,900 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? |
15,280
65,400
53,900
47,770
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