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 Products A $ 14.90 $ 10.80 $ 11.60 $11.20 20.00 28.00 34.20 4.90 3.30 3.20

FINANCIAL ACCOUNTING
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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 Products A $

14.90

$ 10.80 $ 11.60 $11.20 20.00 28.00 34.20 4.90 3.30 3.20 27.10 35.40 27.20 D 41.00 3.80 37.80 $66.90 $ 77.50 $

76.20 $93.80 Additional data concerning these products are listed below. Products Grinding minutes per unit Selling

price per unit Variable selling cost per unit Monthly demand in units ACD 4.40 5.90 4.90 4.00 5 76.70 $ 94.10 5 88.00 $ 104.80 $ 2.80 $ 1.80 5 3.90 $ 2.20 4,600 4,600 3,600 2,600 The grinding machines are potentially the constraint in the production facility. A total of 54,200 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?

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