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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products | ||||
---|---|---|---|---|
A | B | C | D | |
Direct materials | $ 14.90 | $ 10.80 | $ 11.60 | $ 11.20 |
Direct labor | 20.00 | 28.00 | 34.20 | 41.00 |
Variable manufacturing overhead | 4.90 | 3.30 | 3.20 | 3.80 |
Fixed manufacturing overhead | 27.10 | 35.40 | 27.20 | 37.80 |
Unit product cost | $ 66.90 | $ 77.50 | $ 76.20 | $ 93.80 |
Additional data concerning these products are listed below.
Products | ||||
---|---|---|---|---|
A | B | C | D | |
Grinding minutes per unit | 4.40 | 5.90 | 4.90 | 4.00 |
Selling price per unit | $ 76.70 | $ 94.10 | $ 88.00 | $ 104.80 |
Variable selling cost per unit | $ 2.80 | $ 1.80 | $ 3.90 | $ 2.20 |
Monthly demand in units | 4,600 | 4,600 | 3,600 | 2,600 |
The grinding machines are potentially the constraint in the production facility. A total of 54,200 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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