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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 $13.90
Broze Company makes four products in a single facility. These products have the following unit product costs: |
Products | ||||
A | B | C | D | |
Direct materials | $13.90 | $9.80 | $10.60 | $10.20 |
Direct labor | 19.00 | 27.00 | 33.20 | 40.00 |
Variable manufacturing overhead | 3.90 | 2.30 | 2.20 | 2.80 |
Fixed manufacturing overhead | 26.10 | 34.40 | 26.20 | 36.80 |
Unit product cost | $62.90 | $73.50 | $72.20 | $89.80 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 3.40 | 4.80 | 3.90 | 3.00 |
Selling price per unit | $75.70 | $93.10 | $87.00 | $103.80 |
Variable selling cost per unit | $1.80 | $.80 | $2.90 | $1.20 |
Monthly demand in units | 3,600 | 3,600 | 2,600 | 2,800 |
The grinding machines are potentially the constraint in the production facility. A total of 53,300 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? |
35,820
48,060
53,300
10,240
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