AA Appliances manufactures three machines: washers, dryers, and dish washers. Data on the price and costs for the units are shown below.

Washers Dryers Dish Washers

Price $$1,000\mathrm{.}00$ $$730\mathrm{.}00$ $$570\mathrm{.}00$

Direct Materials $$500\mathrm{.}00$ $$365\mathrm{.}00$ $$285\mathrm{.}00$

Direct Labor $$110\mathrm{.}00$ $$120\mathrm{.}00$ $$70\mathrm{.}00$

Variable Manufacturing Overhead $$90\mathrm{.}00$ $$70\mathrm{.}00$ $$90\mathrm{.}00$

It is calculated that manufacturing overhead is allocated to the three products using a rate of $$10$ per machine hour. It is revealed that there are $140$ extra machine hours to allocate to produce another product.

Do not enter dollar signs or commas in the input boxes.

Round all answers to $2$ decimal places.

a$)$ Calculate the machine hours used per item.

Washers Dryers Dish Washers

Variable Manufacturing Overhead Answer

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Overhead rate Answer

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Machine hours used per item Answer

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b$)$ Calculate each item's relevant contribution margin per machine hour.

Washers Dryers Dish Washers

Sales Answer

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Variable costs Answer

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Contribution margin Answer

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Machine hours used by item Answer

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c$)$ If the company uses the the available extra $140$ machine hours to produce more product, $(1)$ which item should AA Appliances produce, and $(2)$ how much contribution margin will be generated?

AA Appliances should make Answer

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