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Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $194.00 $302.40 $255.80 Direct
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below.
Product | ||||||
D | E | F | ||||
Selling price | $194.00 | $302.40 | $255.80 | |||
Direct labor costs | 30.80 | 83.60 | 35.20 | |||
Other variable costs | 96.00 | 82.00 | 147.00 |
The company has 2,400 hours of labor available to build inventory in anticipation of the companys peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $11.
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D D E $194.00 $302.40 $255.80 Selling price Direct labor costs Other variable costs 30.80 83.60 35.20 96.00 82.00 147.00 The company has 2,400 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $11. (a) a) Determine the number of direct labor hours per unit. (Round answers to 2 decimal places, eg. 52.75.) Direct labor Product D hours per unit Product E hours per unit Product F hours per unit e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Determine the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal places, eg, 5275.) Product D Product E E Produ Contribution margin per direct labor hour $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) Determine which product should be produced Determine the total contribution margin for that product. Total contribution margin $ e Textbook and MediaStep by Step Solution
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