Cullumber Innovations Inc Produces Exercise And Fitness Gear Two Of Its Newer Products Require A Finishing Process Th 1 (100.29 KiB) Viewed 36 times
Cullumber Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Dumbbell Rack Weight Bench Selling price per unit $40 $59 Direct materials 18 15 Direct labor 4 8 Variable overhead 3 6 Fixed overhead 5 10 Profit per unit $10 $20 Unit sales demand 5,000 8,000 Machine hours per unit 0.75 1.5
Calculate the total number of machine hours needed to produce enough units to meet the sales demand for the two products. Total number of machine hours
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