Question

Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.95 $ 10.85 $ 11.65 $ 11.25 Direct labor 20.05 28.05 34.25 41.05 Variable manufacturing overhead 4.95 3.35 3.25 3.85 Fixed manufacturing overhead 27.15 35.45 27.25 37.85 Unit product cost $ 67.10 $ 77.70 $ 76.40 $ 94.00 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit $ 76.75 $ 94.15 $ 88.05 $ 104.85 Variable selling cost per unit $ 2.85 $ 1.85 $ 3.95 $ 2.25 Monthly demand in units 4,260 4,260 3,260 2,260 The grinding machines are the constraint in the production facility. A total of 54,900 minutes is 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?

Answer 1

Answer:

minutes of grinding= 60,468 minutes

Explanation:

Giving the following information:

Grinding minutes per unit:  

Product A= 3.80

Product B= 5.30

Product C= 4.30

Product D= 3.40

Monthly demand in units:    

Product A= 4,260

Product B= 4,260

Product C= 3,260

Product D= 2,260

A total of 54,900 minutes is available per month on these machines.

minutes of grinding= Total product A + Total product B + Total product C + Total product D

minutes of grinding=4260*3.80 + 4260*5.3 + 3260*4.3 + 2260*3.4= 60,468 minutes