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 $ 14.40 $ 10.30 $ 11.10 $ 10.70 Direct labor 19.50 27.50 33.70 40.50 Variable manufacturing overhead 4.40 2.80 2.70 3.30 Fixed manufacturing overhead 26.60 34.90 26.70 37.30 Unit product cost $ 64.90 $ 75.50 $ 74.20 $ 91.80 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 3.90 5.40 4.40 3.50 Selling price per unit $ 76.20 $ 93.60 $ 87.50 $ 104.30 Variable selling cost per unit $ 2.30 $ 1.30 $ 3.40 $ 1.70 Monthly demand in units 4,100 4,100 3,100 2,100 The grinding machines are potentially the constraint in the production facility. A total of 53,700 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

Answer 1

Answer:

59,120 minutes

Explanation:

Computation of total minutes of grinding machine time required to satisfy the demand for all products:

Products  Minutes per unit     Demand (Units)     Total Minutes Required

A                       3.90                      4100                             15990

B                       5.40                      4100                             22140

C                       4.40                       3100                            13640

D                       3.50                       2100                            7350

                                            Total minutes required        59,120