Brubacher Company makes four products in a single facility. These products have
ID: 2474327 • Letter: B
Question
Brubacher Company makes four products in a single facility. These products have the following unit product costs:
A
B
C
D
Direct materials
$17.00
$19.30
$15.70
$15.40
Direct labor
18.40
14.10
16.70
15.50
Variable manufacturing overhead
4.30
2.80
1.90
1.40
Fixed manufacturing overhead
20.70
22.50
17.90
11.60
Unit product cost
$60.40
$58.70
$52.20
$43.90
Additional data concerning these products are listed below:
A
B
C
D
Grinding minutes per unit
2.80
1.80
1.00
0.70
Selling price per unit
$75.80
$77.70
$70.80
$53.90
Variable selling cost per unit
$1.90
$2.10
$3.60
$3.30
Monthly demand in units
4,000
3,000
3,000
4,000
The grinding machines are potentially the constraint in the production facility. A total of 20,500 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?
A) 14,000
B) 18,900
C) 20,500
D) 22,400
A
B
C
D
Direct materials
$17.00
$19.30
$15.70
$15.40
Direct labor
18.40
14.10
16.70
15.50
Variable manufacturing overhead
4.30
2.80
1.90
1.40
Fixed manufacturing overhead
20.70
22.50
17.90
11.60
Unit product cost
$60.40
$58.70
$52.20
$43.90
Explanation / Answer
So total minutes required is 22400.
Product Minutes per unit Demand Minues x Demand A 2.8 4000 11200 B 1.8 3000 5400 C 1 3000 3000 D 0.7 4000 2800 Total minutes 22400Related Questions
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