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Broze Company makes four products in a single facility. These products have the following unit product costs:
Products
A
B
C
D
Direct materials
$13.50
$9.40
$10.20
$9.80
Direct labor
18.60
26.60
32.80
39.60
Variable manufacturing overhead
3.50
1.90
1.80
2.40
Fixed manufacturing overhead
25.70
34.00
25.80
36.40
Unit product cost
$61.30
$71.90
$70.60
$88.20
Additional data concerning these products are listed below.
Grinding minutes per unit
3.00
4.00
2.60
Selling price per unit
$75.30
$92.70
$86.60
$103.40
Variable selling cost per unit
$1.40
$.40
$2.50
$.80
Monthly demand in units
3,200
2,200
2,400
The grinding machines are potentially the constraint in the production facility. A total of 52,900 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?
7,800
52,900
26,740
36,340
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