How many minutes of grinding machine time would be required

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Reference no: EM131791994

Problem

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

 

Products

 

A

B

C

D

  Direct materials

$14.30

$10.20

$11.00

$10.60

  Direct labor

19.40

27.40

33.60

40.40

  Variable manufacturing overhead

4.30

2.70

2.60

3.20

  Fixed manufacturing overhead

26.50

34.80

26.60

37.20

  Unit product cost

$64.50

$75.10

$73.80

$91.40

Additional data concerning these products are listed below.

 

Products

 

A

B

C

D

  Grinding minutes per unit

3.80

5.30

4.30

3.40

  Selling price per unit

$76.10

$93.50

$87.40

$104.20

  Variable selling cost per unit

$2.20

$1.20

$3.30

$1.60

  Monthly demand in units

4,000

4,000

3,000

2,000

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?

Reference no: EM131791994

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