Bahrain Rubber Company (BRC) manufactures a line of speel humps. Demand fix the company's products increasing and get from you determ an economical sales and production mix for the comong you The company provaded the long Product Demand next year ( Selling price Direct materials Direct labor Direct labor hours per un Small humps re 57,000 $33.40 $860 $12.80 0.80 Moda humpe E 16,000 $53.20 $128 $240 140 Large hampe se 125,000 $19.20 36.40 56.40 040 The following additional information is available a. The company's plant has a capacity 100,000 direct labor hours per year on a single shaft basis. The company's present employees and oppmest can produce all there products b. The direct labos rate of $16 per hour is expected to remain unchanged during the coming year 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 product? 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 tace 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 educa For the toolbar, press ALT+F10 (PC) or ALT+EN+F10 (Mac) 10 points Bahrain Rubber Company (BRC) manufactures a line of speed humps Demand for the company's products is increasing, and management repeats tance from you in determ an economical sales and production mix for the coming year The company provided the following data Product Small humps size 52,000 $13.40 $8.60 Modum hunaps sure 16,000 $53.20 $12 88 $22.40 1.40 Large lamps se 125,000 $19.20 $6.40 $6.40 0.40 Demand next year (units Selling price Direct materials Direct labor Direct labor hours per unit $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 de 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. Varsable 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)