1 10 poin Bahrain Rubber Company (BRC) manufactures a line of speed humps. Demand for the company's products is increming, and imagement requests assistance from you in determining an economical sales and production mix for the coming year. The company provided the following data Product Demand next year (units Selling price Direct materials Direct labor Direct labor hours per unit Small humps size 52,000 $33.40 $8.60 $12.80 0.80 The following additional information is available: Medium humps size 16,000 $53 20 $12.88 $22.40 1.40 Large humps size 125,000 $19.20 $6.40 $6.40 040 a. The company's plant has a capacity 100,000 direct labor hours per year on a single shift basis. The company's presest employees and equipment can produce all three products b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year. c. Fixed cost total $520,000 per year. Variable overhead costs are $4 per direct labor-hour d. All the company's nonmanufacturing costs are fixed. Required: 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's the products? 2. Assuming that direct labor-hours is the company's constraining resource, what is the contribution margin per direct labor-hour for each of the company's three products? Rank them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case For the toolbar, press ALT+F10 (PC) or ALT+FN-P10 (Mac BIUS Paragraph F v Arial 10pt v IXO ALV v Question 1 of 48 Question 1 10 pales Bahrain Rubber Company (BRC) manufactures a line of speed humps Demand for the company's products is increasing, and management requests muistance from you an economical sales and production mix for the coming year The company provided the following da Product Demand next year (units) Selling price Direct materials Direct labor Direct labor hours per unit Small humps size 52,000 $33.40 $8.60 Medium humps size 16,000 $33.20 $12.88 $22.40 1.40 Large humps size 125,000 $19.20 $6.40 $6.40 0.40 $12.80 0.80 The following additional information is available. a. The company's plant has a capacity 100,000 direct labor hours per year on a single shift basis. The company's present employees and equipment can produce all the prob b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year. c. Fixed cost total $520,000 per year. Variable overhead costs are $4 per direct labor-hour d. All the company's nonmanufacturing costs are fixed. Required: 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's three products? 2. Assuming that direct labor-hours is the company's constraining resource, what is the contribution margin per direct labor-hour for each of the company's three products Rank them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? For the toolbar, press ALT+F10 (PO) or ALT+FN+F10 (Mac). R L L 5 Paragraph Arial 100t GYMRZA T YBBO