Question
The Snow Firm makes four products in a single facility. These products have the following unit product costs: Product A B C D Direct materials
The Snow Firm makes four products in a single facility. These products have the following unit product costs: Product A B C D Direct materials $15.60 $19.50 $12.50 $15.20 Direct labour 17.60 21.00 15.40 9.40 Variable manufacturing 4.40 5.60 8.10 5.10 overhead Fixed manufacturing 27.50 14.40 14.50 16.50 overhead Unit product cost $65.10 $60.50 $50.50 $46.20 Additional data concerning these products are listed below. Product A B C D Finishing minutes per unit 2.00 1.10 0.70 0.30 Selling price per unit $78.70 $71.10 $67.90 $62.60 Variable selling cost per unit $2.60 $3.10 $2.80 $3.50 Monthly demand in units 3.000 2,000 2,000 4,000 The finishing machines are potentially the constraint in the production facility. A total of 10,500 minutes is available per month on these machines. Direct labour is a variable cost in this company. How many minutes of finishing machine time would be required to satisfy demand for all four products? Multiple Choice 11,000 minutes. 10,700 minutes 10,500 minutes. 10,800 minutes
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