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

Question

Brown Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $14.30 $10.20 $11.00 $10.60 9.40 27.40 33.60 40.40 3.20 37.20 $64.50 75.10 $73.80 $91.40 4.30 26.50 2.70 34.80 2.60 26.60 Additional data concerning these products are listed below Products Grinding minutes per unit Selling price per unlt Variable selling cost per unit Monthly demand in units 3.40 $76.10 $93.50 $8740 $104.20 $2.20 1.20 3.30 $1.60 ,000 4,000 3,000 2,000 3.80 5.30 4.30 The grinding machines are potentially the constraint in the production facility. A total of 53,600 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? O 56,100 O 40,900 O 53,600 O 13,000

Explanation / Answer

A B C D Total Monthly demand 4000 4000 3000 2000 Grinding minutes per unit 3.8 5.3 4.3 3.4 Total Grinding minutes 15200 21200 12900 6800 56100 Option 1 is correct

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