Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products
A
B
C
D
Direct materials
$14.20 $10.10 $10.90 $10.50
Direct labor
19.30 27.30 33.50 40.30
Variable manufacturing overhead
4.20 2.60 2.50 3.10
Fixed manufacturing overhead
26.40 34.70 26.50 37.10
Unit product cost
$64.10 $74.70 $73.40 $91.00
Additional data concerning these products are listed below.
Products
A
B
C
D
Grinding minutes per unit
3.70 5.20 4.20 3.30
Selling price per unit
$76.00 $93.40 $87.30 $104.10
Variable selling cost per unit
$ 2.10 $ 1.10 $ 3.20 $ 1.50
Monthly demand in units
3,900 3,900 2,900 3,100
The grinding machines are potentially the constraint in the production facility. A total of 54,900 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?
Multiple Choice
42,690
12,280
54,900
57,120