Question

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: 

	A	B	C	D
Direct materials	$13.80	$9.70	$10.50	$10.10
Direct labor	18.90	26.90	33.10	39.90
Variable manufacturing overhead	3.80	2.20	2.10	2.70
Fixed manufacturing overhead	26.00	34.30	26.10	36.70
Unit product cost	$62.50	$73.10	$71.80	$89.40

Additional data concerning these products are listed below 

	A	B	C	D
Grinding minutes per unit	3.30	4.60	3.80	2.90
Selling price per unit	$75.60	$93.00	$86.90	$103.70
Variable selling cost per unit	$1.70	$0.70	$2.80	$1.10
Monthly demand in units	3,500	3,500	2,500	2,700

The grinding machines are potentially the constraint in the production facility. A total of 53,200 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?

Answer 1