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4 book H Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials The demand for the company's products far exceeds its
4 book H Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint in the production process is upholstery labor-hours Information concerning three of Portsmouth's products appears below Recliner Sofa Selling price per unit Variable cost per unit $1,140 5700 Upholstery bor-hours per unit nours $1,910 $1,250 11 hours Love Seat $1,300 1950 5 hours Required: 1 Portsmouth considering paying its upholstery laborers hounty compensation, in addition to their usual salaries, to work overtime Assuming 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 $56 per hour. The management of Portsmouth is confident this upholstering company's work is high quality, and its 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 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 3 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming 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 wwtee rate per hour Required 2 > 4 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below. Recliner Selling price per unit Variable cost per unit $1,148 $700 $1,910 $1,250 Love Seat $1,300 $950 Supped Upholstery labor-hours per unit hours 11 hours 5 hours Required: flock H 1 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming 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 $56 per hour. The management of Portsmouth is confident this upholstering company's work is high quality, and its 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 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 31 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $50 per hour. The management of Portsmouth is confident this upholstering company's work is high quality, and its 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 if it hires the nearby upholstering company to make Love Seats? Shose less A Addional contrbubon margin per bour 4 Portsmouth Company makes upholstered fumiture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity The bottleneck (or constraint) in the production process is upholstery labor hours. Information concerning three of Portsmouth's products appears below Recliner Sofa Selling price per unit Variable cost per unit. $1,148 $700 $1,910 $1,250 Love Seat $1,300 $950 Upholstery labor-hours per unit hours 11 hours 5 hours Required: Book 1 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime Assuming 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 $56 per hour. The management of Portsmouth is confident this upholstering company's work is high quality, and its 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 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 3 Should Portsmouth hire the nearby upholstering company? Yes No
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