Question

Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Products AB C $15.25 $11.15 $11.95 20.35 28.35 34.55 5.25 3.65 3.55 27.45 35.75 27.55 $68.30 $78.90 $77.60 D $11.55 41.35 4.15 38.15 $95.20 Additional data concerning these products Dure listed below. А Grinding minutes per unit 3.80 Selling price per unit $77.05 Variable selling cost per unit $ 3.15 Monthly demand in units 4,380 Products B 5.30 4.30 $94.45 $88.35 $ 2.15 $ 4.25 4,380 3,380 3.40 $105.15 $ 2.55 2,380 The grinding machines are the constraint in the production facility. A total of 55,500 minutes is 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? < Prev 15 of 31 !!! Next > SAMSUNG

Answer 1

	Particulars	A	B	C	D
(a)	Grinding minutes per unit	3.80	5.30	4.30	3.40
(b)	Monthly demand in units	4,380	4,380	3,380	2,380
(c )	Total grinding minutes required to satify all demanded units(a)*(b)	16,644	23,214	14,534	8,092	62,484
	Hence, total of 62,484 minutes required to production of all 4 units.