Question

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

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

Products
A B C D
Direct materials $ 13.30 $ 9.20 $ 10.00 $ 9.60
Direct labor 18.40 26.40 32.60 39.40
Variable manufacturing overhead 3.30 1.70 1.60 2.20
Fixed manufacturing overhead 25.50 33.80 25.60 36.20
Unit product cost $ 60.50 $ 71.10 $ 69.80 $ 87.40

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 2.80 3.60 3.30 2.40
Selling price per unit $ 75.10 $ 92.50 $ 86.40 $ 103.20
Variable selling cost per unit $ 1.20 $ 0.20 $ 2.30 $ 0.60
Monthly demand in units 3,000 3,000 2,000 2,200

The grinding machines are potentially the constraint in the production facility. A total of 52,700 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

  • 31,080

  • 52,700

  • 22,680

  • 6,700

Homework Answers

Answer #1

Total grinding machine time required to satisfy the demand of four products is = 31080.

It is calculated with the following formula:

Total grinding machine time required= (grinding minutes per unit)*(monthly demand in units)

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