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A furniture manufacturing company produces three types of chairs: Standard, Deluxe, and Executive. Each chair type requires different amounts of direct labor and materials. The
A furniture manufacturing company produces three types of chairs: Standard, Deluxe, and Executive. Each chair type requires different amounts of direct labor and materials. The company's direct labor rates are $20 per hour. The direct labor hours and material costs for each chair type are as follows:
- Standard Chair: Requires 3 hours of direct labor and $50 worth of materials per unit.
- Deluxe Chair: Requires 5 hours of direct labor and $80 worth of materials per unit.
- Executive Chair: Requires 8 hours of direct labor and $120 worth of materials per unit.
The company expects to produce the following quantities of each chair type this month:
- Standard Chairs: 500 units
- Deluxe Chairs: 300 units
- Executive Chairs: 200 units
Now, considering the above information, answer the following questions:
- What is the total direct labor cost for producing all three types of chairs this month?
- How much will the company spend on materials for producing Deluxe Chairs?
- If the company operates 8 hours a day for 25 days this month, how many total direct labor hours will be worked?
- What is the average direct labor cost per unit for Executive Chairs?
- If the company wants to minimize direct labor costs while meeting the demand for each chair type, which chair type should it focus on producing more efficiently?
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