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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 $13.00
Broze Company makes four products in a single facility. These products have the following unit product costs: |
Products | ||||
A | B | C | D | |
Direct materials | $13.00 | $8.90 | $9.70 | $9.30 |
Direct labor | 18.10 | 26.10 | 32.30 | 39.10 |
Variable manufacturing overhead | 3.00 | 1.40 | 1.30 | 1.90 |
Fixed manufacturing overhead | 25.20 | 33.50 | 25.30 | 35.90 |
Unit product cost | $59.30 | $69.90 | $68.60 | $86.20 |
Additional data concerning these products are listed below. |
Products | ||||
A | B | C | D | |
Grinding minutes per unit | 2.50 | 3.00 | 3.00 | 2.10 |
Selling price per unit | $74.80 | $92.20 | $86.10 | $102.90 |
Variable selling cost per unit | $.90 | $-.10 | $2.00 | $.30 |
Monthly demand in units | 2,700 | 2,700 | 1,700 | 1,900 |
The grinding machines are potentially the constraint in the production facility. A total of 52,400 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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