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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 $15.00
Broze Company makes four products in a single facility. These products have the following unit product costs:
Products | ||||
A | B | C | D | |
Direct materials | $15.00 | $10.90 | $11.70 | $11.30 |
Direct labor | 20.10 | 28.10 | 34.30 | 41.10 |
Variable manufacturing overhead | 5.00 | 3.40 | 3.30 | 3.90 |
Fixed manufacturing overhead | 27.20 | 35.50 | 27.30 | 37.90 |
Unit product cost | $67.30 | $77.90 | $76.60 | $94.20 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 4.50 | 6.00 | 5.00 | 4.10 |
Selling price per unit | $76.80 | $94.20 | $88.10 | $104.90 |
Variable selling cost per unit | $2.90 | $1.90 | $4.00 | $2.30 |
Monthly demand in units | 4,700 | 4,700 | 3,700 | 2,700 |
The grinding machines are potentially the constraint in the production facility. A total of 54,300 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? |
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