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?