Question

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 15.10 $ 11.00 $ 11.80 $ 11.40 Direct labor 20.20 28.20 34.40 41.20 Variable manufacturing overhead 5.10 3.50 3.40 4.00 Fixed manufacturing overhead 27.30 35.60 27.40 38.00 Unit product cost $ 67.70 $ 78.30 $ 77.00 $ 94.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.60 6.10 5.10 4.20 Selling price per unit $ 76.90 $ 94.30 $ 88.20 $ 105.00 Variable selling cost per unit $ 3.00 $ 2.00 $ 4.10 $ 2.40 Monthly demand in units 4,800 4,800 3,800 2,800 The grinding machines are potentially the constraint in the production facility. A total of 54,400 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 demand for all four products? Multiple Choice 82,500 54,400 19,480 60,420

Answer 1

Answer:

82,500

Explanation:

The computation of the minutes of grinding machine required to satisfy demand is shown below

= (4,800 units × 4.60 + 4,800 units  × 6.10 + 3,800 × 5.10 + 2,800 × 4.20)

= 22,080 + 29,280 + 19,380 + 11,760

= 82,500

We simply multiplied the Grinding minutes per unit with the Monthly demand in units and the same is to be considered above