70.2K
Verified Solution
Link Copied!
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
| | Products |
| | A | B | C | D |
| Direct materials | $ | 13.80 | $ | 9.70 | $ | 10.50 | $ | 10.10 |
| Direct labor | | 18.90 | | 26.90 | | 33.10 | | 39.90 |
| Variable manufacturing overhead | | 3.80 | | 2.20 | | 2.10 | | 2.70 |
| Fixed manufacturing overhead | | 26.00 | | 34.30 | | 26.10 | | 36.70 |
| Unit product cost | $ | 62.50 | $ | 73.10 | $ | 71.80 | $ | 89.40 |
| |
Additional data concerning these products are listed below.
| | Products |
| | A | B | C | D |
| Grinding minutes per unit | | 3.30 | | 4.60 | | 3.80 | | 2.90 |
| Selling price per unit | $ | 75.60 | $ | 93.00 | $ | 86.90 | $ | 103.70 |
| Variable selling cost per unit | $ | 1.70 | $ | 0.70 | $ | 2.80 | $ | 1.10 |
| Monthly demand in units | | 3,500 | | 3,500 | | 2,500 | | 2,700 |
| |
The grinding machines are potentially the constraint in the production facility. A total of 53,200 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
44,980
33,430
9,600
53,200
Answer & Explanation
Solved by verified expert
