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Hahrain Robber Company (RC) determining an economical sales gestion is for the Product of Demand next your units) Selling price Direct materials Direct labor Direct
Hahrain Robber Company (RC) determining an economical sales gestion is for the Product of Demand next your units) Selling price Direct materials Direct labor Direct labor hours per unit ed Imp Des for the copy's ping, g wing year. The company provided the bling 50,000 $1670 $4.30 56.40 0.40 35,000 966 3644 $11.20 010 VISTAR 55 3336 The following additional information is available a. The company's plant has a capacity 99,000 direct labor-hours per year on a single shaft basis. The company's present employees and equipment can produce al 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. Variable overhead costs are $2 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-bour 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 ca For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mar)
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