Bruce Corporation makes four products in a single facility. These products have

Question

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Additional data concerning these products are listed below.

The grinding machines are potentially the constraint in the production facility. A total of 54,300 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

78,920

18,600

57,770

54,300

Products A B C D Direct materials $ 15.00 $ 10.90 $ 11.70 $ 11.30 Direct labor 20.10 28.10 34.30 41.10 Variable manufacturing overhead 5.00 3.40 3.30 3.90 Fixed manufacturing overhead 27.20 35.50 27.30 37.90 Unit product cost $ 67.30 $ 77.90 $ 76.60 $ 94.20

Explanation / Answer

Calculate grinding machine time would be required to satisfy demand for all four products :

So answer is a) 78920

Minutes Product A 4700*4.5 = 21150 Product B 4700*6 = 28200 Product C 3700*5 = 18500 Product D 2700*4.1 = 11070 Total 78920

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.