3 Bahrain Rubber Company (BRC) manufactures a line of speed bumps Demand for the company's products is increasing and e sales and production mix for the coming year. The company provided the following data Product Demand next year mies Selling price Direct materials Direct labor Direct labor hours per unit Small humps sive $22000 $33.40 58.00 $12.00 080 The following additional information is available: Med humps sias 16,000 $13.20 $12 $22.40 1.40. Large hings w 125,000 $1030 36.40 36.40 0.40 a The company's plant has a capacity 100,000 direct labor-bours per year on a single-shift basis. The company's present employees and equipment can produce all the podc 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-bour for each of the company's three products? Rank thon 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-F10 (Mac SCE BIVS Paragraph xxx Q 3 Arial 10pt E E 5 Moving to another question will save this response Question 3 Question of 4 10 points Bahrain Rubber Company (BRC) manufactures a line of speed bumps. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year The company provided the following data Senall humps size Product Demand next year (units) Selling price Medinum humps size 16,000 $53.20 $12.88 $22.40 1.40 Large bumps size 125,000 $19.20 $6.40 $6.40 0.40 Direct materials Direct labor Direct labor hours per unit 52,000 $33.40 $8.60 $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 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 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 (PC) or ALT+FN-F10 (Mac) B IVS Paragraph x x2 v Arial 10pt A (0)