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