Question
Company makes four products in a single facility. These products have the following unit product costs: A B C D Direct Materials $14.30 $10.20 $11.00
Company makes four products in a single facility. These products have the following unit product costs:
| A | B | C | D | |
| Direct Materials | $14.30 | $10.20 | $11.00 | $10.60 |
| Direct Labor | $19.40 | $27.40 | $33.60 | $40.40 |
| Variable manufacturing overhead | $4.30 | $2.70 | $2.60 | $3.20 |
| Fixed manufacturing overhead | $26.50 | $34.80 | $26.60 | $37.20 |
| Unit product cost | $64.50 | $75.10 | $73.80 | $91.40 |
Additional data concerning these products are listed below.
| Products | |||||
| A | B | C | D | ||
| Grinding minutes per unit | 3.8 | 5.3 | 4.3 | 3.4 | |
| Selling price per unit | $76.10 | $93.50 | $87.40 | $104.20 | |
| Variable selling cost per unit | $2.20 | $1.20 | $3.30 | $1.60 | |
| Monthly demand in units | 4,000 | 4,000 | 3,000 | 2,000 | |
The grinding machines are potentially the constraint in the production facility. A total of 53,600 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 the demand for all four products?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Excellence Principles And Practices In Accounting Ensuring Accuracy Transparency And Compliance In Financial Reporting
Authors: Ryan Flores
1st Edition
B0C6448LC8, 979-8395841360
