Broze Company makes four products in a single facility. These products have the following unit product costs: Additional data concerning these products are listed below. The grinding machines are potentially the constraint in the production facility. A total of 53,600 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?
A)56,100
B)40,900
C)53,600
D)13,000

Question

Broze Company makes four products in a single facility. These products have the following unit product costs:  Additional data concerning these products are listed below.  The grinding machines are potentially the constraint in the production facility. A total of 53,600 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?
A)56,100 
B)40,900 
C)53,600 
D)13,000

Quizplus · Accepted Answer

The correct answer is A because the total demand for all four products is 56,100 units, and each unit requires 1 minute of grinding machine time.

Broze Company Makes Four Products in a Single Facility