Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products D Direct materials $14.00 $ 9.90 $10.70 $10.30 Direct labor 19.10 27.10 33.30 40.10 2.30 2.90 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 4.00 2.40 26.20 34.50 26.30 36.90 $63.30 $73.90 $72.60 $90.20
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products D Direct materials $14.00 $ 9.90 $10.70 $10.30 Direct labor 19.10 27.10 33.30 40.10 2.30 2.90 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 4.00 2.40 26.20 34.50 26.30 36.90 $63.30 $73.90 $72.60 $90.20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
33

Transcribed Image Text:Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products
C D
Direct materials
$14.00 $ 9.90 $10.70 $10.30
Direct labor
19.10
27.10 33.30
40.10
4.00
2.40
2.30
2.90
Variable manufacturing overhead
26.20
34.50 26.30
36.90
Fixed manufacturing overhead
Unit product cost
$63.30 $73.90 $72.60 $90.20
Additional data concerning these products are listed below.
Products
A
5.00
4.00
3.10
Grinding minutes per unit
Selling price per unit
Variable selling cost per unit
Monthly demand in units
3.50
$75.80 $93.20 $87.10 $103.90
$ 1.90 $ 0.90 $ 3.00 $ 1.30
2,700
3,700
3,700
2,900
The grinding machines are potentially the constraint in the production facility. A total of 53,400 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:Products
В
D
Grinding minutes per unit
Selling price per unit
Variable selling cost per unit
3.50
5.00
4.00
3.10
$75.80 $93.20 $87.10 $103.90
$ 1.90 $ 0.90 $ 3.00 $
1.30
Monthly demand in units
3,700 3,700 2,700
2,900
The grinding machines are potentially the constraint in the production facility. A total of 53,400 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?
Multiple Choice
53.400
10,900
38.290
51,240
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