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Brunson Tables Ltd. Manufactures three types of tables: wooden, plastic, and glass-surfaced. Data on price and costs for the units are shown below. Wooden Plastic
Brunson Tables Ltd. Manufactures three types of tables: wooden, plastic, and glass-surfaced. Data on price and costs for the units are shown below.
Wooden | Plastic | Glass | |
Price | $96.00 | $64.00 | $104.00 |
Variable Cost | $44.00 | $27.00 | $58.00 |
Allocated Fixed Cost | $2.00 | $5.00 | $3.00 |
Profit per Unit | $50.00 | $32.00 | $43.00 |
The allocated fixed cost, which is fixed manufacturing overhead, is allocated to the three products using a rate of $1 per direct labor hour consumed by the product. There are 1,100 uncommitted hours of direct labor that can be allocated to manufacturing more products. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places.
a) Which one of the three products should be produced using the available direct labor hours? Assume that Brunson Tables will be within capacity to produce and sell the additional units. Wooden Plastic Glass Price $ $ A Variable Cost $ $ $ Contribution Margin Per Unit $ $ $ Direct labor hours used: Wooden Table Plastic Table Glass Table Contribution Margin per direct labor hour for a unit of: Wooden Table $ Plastic Table $ Glass Table $Step by Step Solution
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