Question
Glocker Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 33.70
Glocker Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 33.70 $ 50.20 $ 56.60 Direct labor $ 21.10 $ 23.70 $ 14.50 Variable manufacturing overhead $ 2.10 $ 1.50 $ 0.20 Fixed manufacturing overhead 12.60 8.20 8.80 Unit product cost $69.50 $83.60 $80.10 Additional data concerning these products are listed below. Mixing minutes per unit 1.30 0.50 0.20 Selling price per unit $ 67.00 $ 89.40 $ 82.90 Variable selling cost per unit $ 1.50 $ 2.00 $ 1.80 Monthly demand in units 2,900 4,200 2,200
The mixing machines are potentially the constraint in the production facility. A total of 6,210 minutes are available per month on these machines. Direct labor is a variable cost in this company. |
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a. | How many minutes of mixing machine time would be required to satisfy demand for all three products?
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