Exercise 13-6 (Algo) Managing a Constrained Resource (LO13-6) Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Selling price per unit Variable cost per unit Upholstery labor hours per unit Recliner Sofa Love Seat $ 1. 156 $ 1,800 $ 1,560 $ 750 $ 1,150 $ 2,050 7 hours 12 hours 6 hours nes Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $48 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the love Seat. How much additional contribution margin per hour con Portsmouth eam if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required Recured 2 Red Portsmouth is considering paving its upholstery laborers hourly compensation, in addition to their usual salaries to work overtime Asuming that this extra time would be used to produce soos up to how much of an overtiment per hour should the company be willing to pay to keep the upholstery shop open after mal working hours