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

Question

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

Additional data concerning these products are listed below.

The grinding machines are potentially the constraint in the production facility. A total of 53,200 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

44,980

33,430

9,600

53,200

Products A B C D Direct materials $ 13.80 $ 9.70 $ 10.50 $ 10.10 Direct labor 18.90 26.90 33.10 39.90 Variable manufacturing overhead 3.80 2.20 2.10 2.70 Fixed manufacturing overhead 26.00 34.30 26.10 36.70 Unit product cost $ 62.50 $ 73.10 $ 71.80 $ 89.40

Explanation / Answer

Answer: 44,980

Products Total A B C D Monthly demand in units 3500 3500 2500 2700 Grinding minutes per unit 3.30 4.60 3.80 2.90 Total grinding machine time 11550 16100 9500 7830 44980

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