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Everything Wood (3.5 points) Everything Wood produces wooden desks, chairs, and bookshelves. These items are produced using the same machines, and there is a
Everything Wood (3.5 points) Everything Wood produces wooden desks, chairs, and bookshelves. These items are produced using the same machines, and there is a maximum of 80,000 machine-hours per quarter. The information about the first quarter are: Desk Chair Bookshelves Machine hours per unit 1.00 0.50 0.25 Selling price $ 350 $ 200 $ 175 Direct materials $ 40 $ 30 $ 35 Direct labour S 70 $ 65 $ 50 Variable overhead S 55 $ 50 $ 42 Fixed overhead S 28 $ 32 $ 24 Units ordered by customers and to be 60,000 48,000 40,000 produced in the first quarter Q1 Using the most appropriate methodology rank the three products on the convenience of producing them in case of scarce capacity (not enough machine-hours) Ranking Q2 Desk Chair Bookshelves Excluding subcontracting, prepare the manufacturing program (volumes to be produced per each product) that optimizes the use of scarce capacity Desk Chair Bookshelves
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