|
|
Products
|
|
|
A
|
B
|
C
|
D
|
|
Direct materials
|
$13.50
|
$9.40
|
$10.20
|
$9.80
|
|
Direct labor
|
18.60
|
26.60
|
32.80
|
39.60
|
|
Variable manufacturing overhead
|
3.50
|
1.90
|
1.80
|
2.40
|
|
Fixed manufacturing overhead
|
25.70
|
34.00
|
25.80
|
36.40
|
|
Unit product cost
|
$61.30
|
$71.90
|
$70.60
|
$88.20
|
|
Additional data concerning these products are listed below.
|
|
|
Products
|
|
|
A
|
B
|
C
|
D
|
|
Grinding minutes per unit
|
3.00
|
4.00
|
3.50
|
2.60
|
|
Selling price per unit
|
$75.30
|
$92.70
|
$86.60
|
$103.40
|
|
Variable selling cost per unit
|
$1.40
|
$.40
|
$2.50
|
$.80
|
|
Monthly demand in units
|
3,200
|
3,200
|
2,200
|
2,400
|
|
The grinding machines are potentially the constraint in the production facility. A total of 52,900 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?
|
| |
|
|
|
|
|
|
|
|