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

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Accounting

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

Products
A B C D
Direct materials $ 14.50 $ 10.40 $ 11.20 $ 10.80
Direct labor 19.60 27.60 33.80 40.60
Variable manufacturing overhead 4.50 2.90 2.80 3.40
Fixed manufacturing overhead 26.70 35.00 26.80 37.40
Unit product cost $ 65.30 $ 75.90 $ 74.60 $ 92.20

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 4.00 5.50 4.50 3.60
Selling price per unit $ 76.30 $ 93.70 $ 87.60 $ 104.40
Variable selling cost per unit $ 2.40 $ 1.40 $ 3.50 $ 1.80
Monthly demand in units 4,200 4,200 3,200 2,200

The grinding machines are potentially the constraint in the production facility. A total of 53,800 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

  • 45,420

  • 53,800

  • 62,220

  • 14,500

Answer & Explanation Solved by verified expert
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