2F%252Fims.mheducat Assignment required Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products for exceeds its manufacturing capacity. The bottleneck (or constrainty in the production process is upholstery labor hours. Information concerning three of Portsmouth's products appears below. Selling price per unit Variable cost per unit Upholstery Labor-hours per unit Recliner 1,246 $ 850 S 5 hours Sota Love Seat 2,070 $ 1,430 1,350 $ 1,150 12 hours 4 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $55 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth eam if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries to work avertime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the co willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $55 per hour. The of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution me hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? Maximum overtime rate per hour Required 2 > Upholstery Labor-hours per unit B50 6 hours 1,350 $ 12 hours 1.430 1150 4 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to wor Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the c willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $55 per hour. The of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly a Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $55 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn in it hires the nearby upholstering company to make Love Seats? Show less Additional contribution margin per hour Required Required 33 tering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should Portsmouth hire the nearby upholstering company? Yes No
