Question
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 | $ | 14.80 | $ | 10.70 | $ | 11.50 | $ | 11.10 |
| Direct labor | 19.90 | 27.90 | 34.10 | 40.90 | ||||
| Variable manufacturing overhead | 4.80 | 3.20 | 3.10 | 3.70 | ||||
| Fixed manufacturing overhead | 27.00 | 35.30 | 27.10 | 37.70 | ||||
| Unit product cost | $ | 66.50 | $ | 77.10 | $ | 75.80 | $ | 93.40 |
Additional data concerning these products are listed below.
| Products | ||||||||
| A | B | C | D | |||||
| Grinding minutes per unit | 4.30 | 5.80 | 4.80 | 3.90 | ||||
| Selling price per unit | $ | 76.60 | $ | 94.00 | $ | 87.90 | $ | 104.70 |
| Variable selling cost per unit | $ | 2.70 | $ | 1.70 | $ | 3.80 | $ | 2.10 |
| Monthly demand in units | 4,500 | 4,500 | 3,500 | 2,500 | ||||
The grinding machines are potentially the constraint in the production facility. A total of 54,100 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?
Multiple Choice
-
54,100
-
52,650
-
72,000
-
16,900
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products A B C D Direct materials $ 14.80 $ 10.70 $ 11.50 $ 11.10 Direct labor 19.90 27.90 34.10 40.90 Variable manufacturing overhead 4.80 3.20 3.10 3.70 Fixed manufacturing overhead 27.00 35.30 27.10 37.70 Unit product cost $ 66.50 $ 77.10 $ 75.80 $ 93.40 Additional data concerning these products are listed below.
Products A B C D Grinding minutes per unit 4.30 5.80 4.80 3.90 Selling price per unit $ 76.60 $ 94.00 $ 87.90 $ 104.70 Variable selling cost per unit $ 2.70 $ 1.70 $ 3.80 $ 2.10 Monthly demand in units 4,500 4,500 3,500 2,500 The grinding machines are potentially the constraint in the production facility. A total of 54,100 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?
Multiple Choice
-
54,100
-
52,650
-
72,000
-
16,900
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