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2 June, 15:05

Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.95 $ 10.85 $ 11.65 $ 11.25 Direct labor 20.05 28.05 34.25 41.05 Variable manufacturing overhead 4.95 3.35 3.25 3.85 Fixed manufacturing overhead 27.15 35.45 27.25 37.85 Unit product cost $ 67.10 $ 77.70 $ 76.40 $ 94.00 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit $ 76.75 $ 94.15 $ 88.05 $ 104.85 Variable selling cost per unit $ 2.85 $ 1.85 $ 3.95 $ 2.25 Monthly demand in units 4,260 4,260 3,260 2,260 The grinding machines are the constraint in the production facility. A total of 54,900 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?

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  1. 2 June, 17:42
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    minutes of grinding = 60,468 minutes

    Explanation:

    Giving the following information:

    Grinding minutes per unit:

    Product A = 3.80

    Product B = 5.30

    Product C = 4.30

    Product D = 3.40

    Monthly demand in units:

    Product A = 4,260

    Product B = 4,260

    Product C = 3,260

    Product D = 2,260

    A total of 54,900 minutes is available per month on these machines.

    minutes of grinding = Total product A + Total product B + Total product C + Total product D

    minutes of grinding=4260*3.80 + 4260*5.3 + 3260*4.3 + 2260*3.4 = 60,468 minutes
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