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The Chestnut Company makes two products in one manufacturing facility. Data regarding these products are as follows: A B Direct Materials $3.54 $6.35 Direct Labor
The Chestnut Company makes two products in one manufacturing facility. Data regarding these products are as follows:
| A | B |
Direct Materials | $3.54 | $6.35 |
Direct Labor | 1.75 | 3.60 |
Variable Overhead | .35 | .70 |
Fixed Overhead | 5.30 | 4.15 |
Unit Product Cost | $10.94 | $14.80 |
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Machine Hours Per Unit | 1.5 | 3 |
Selling Price per Unit | $17.00 | $25.00 |
Demand (units) | 2,000 | 1,500 |
What number of machine hours is necessary to produce the number of units to satisfy demand?
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