Broze Company makes four products in a single facility. These products have the

Question

Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $13.90 $9.80 $10.60 $10.20 Direct labor 19.00 27.00 33.20 40.00 Variable manufacturing overhead 3.90 2.30 2.20 2.80 Fixed manufacturing overhead 26.10 34.40 26.20 36.80 Unit product cost $62.90 $73.50 $72.20 $89.80 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 3.40 4.80 3.90 3.00 Selling price per unit $75.70 $93.10 $87.00 $103.80 Variable selling cost per unit $1.80 $.80 $2.90 $1.20 Monthly demand in units 3,600 3,600 2,600 2,800 The grinding machines are potentially the constraint in the production facility. A total of 53,300 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? 53,300 48,060 10,240 35,820

Explanation / Answer

How many minutes of grinding machine time would be required to satisfy demand for all four products? A B C D Total Grinding minutes per unit 3.4 4.8 3.9 3 Monthly demand in units 3600 3600 2600 2800 Minutes of griniding time 12240 17280 10140 8400 48060

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