Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A B с D $14.40 $10.30 $11.10 $10.70 19.50 27.50 33.70 40.50 4.40 2.80 2.70 3.30 26.60 34.90 26.70 37.30 $64.90 $75.50 $74.20 $91.80 Products A B C D 3.90 5.40 4.40 3.50 $76.20 $93.60 $87.50 $104.30 $ 2.30 $ 1.30 $ 3.40 $ 1.70 4,100 4,100 3,100 2,100 The grinding machines are potentially the constraint in the production facility. A total of 53,700 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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Unit product cost
Additional data concerning these products are listed below.
Grinding minutes per unit
Selling price per unit
Variable selling cost per unit
Monthly demand in units
Products
C с
D
A
B
$14.40 $10.30 $11.10 $10.70
19.50 27.50 33.70 40.50
4.40 2.80 2.70 3.30
26.60 34.90 26.70 37.30
$64.90 $75.50 $74.20 $91.80
Products
A
с
B
с
D
3.90
5.40 4.40 3.50
$76.20 $93.60 $87.50 $104.30
$ 2.30 $ 1.30 $ 3.40 $ 1.70
4,100 4,100 3,100 2,100
The grinding machines are potentially the constraint in the production facility. A total of 53,700 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?
Transcribed Image Text:Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products C с D A B $14.40 $10.30 $11.10 $10.70 19.50 27.50 33.70 40.50 4.40 2.80 2.70 3.30 26.60 34.90 26.70 37.30 $64.90 $75.50 $74.20 $91.80 Products A с B с D 3.90 5.40 4.40 3.50 $76.20 $93.60 $87.50 $104.30 $ 2.30 $ 1.30 $ 3.40 $ 1.70 4,100 4,100 3,100 2,100 The grinding machines are potentially the constraint in the production facility. A total of 53,700 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?
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