Question
Brubacher Company makes four products in a single facility. These products have the following unit product costs: A B C D Direct materials $17.00 $19.30
Brubacher Company makes four products in a single facility. These products have the following unit product costs:
| A | B | C | D |
Direct materials | $17.00 | $19.30 | $15.70 | $15.40 |
Direct labor | 18.40 | 14.10 | 16.70 | 15.50 |
Variable manufacturing overhead | 4.30 | 2.80 | 1.90 | 1.40 |
Fixed manufacturing overhead | 20.70 | 22.50 | 17.90 | 11.60 |
Unit product cost | $60.40 | $58.70 | $52.20 | $43.90 |
Additional data concerning these products are listed below:
| A | B | C | D |
Grinding minutes per unit | 2.80 | 1.80 | 1.00 | 0.70 |
Selling price per unit | $75.80 | $77.70 | $70.80 | $53.90 |
Variable selling cost per unit | $1.90 | $2.10 | $3.60 | $3.30 |
Monthly demand in units | 4,000 | 3,000 | 3,000 | 4,000 |
The grinding machines are potentially the constraint in the production facility. A total of 20,500 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?
A) 14,000 | ||
B) 18,900 | ||
C) 20,500 | ||
D) 22,400 |
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