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Exerclse 13.6 (Algo) Managing a Constralned Resource [LO13.6] Portsmouth Company makes upholstered fumiture. Its only varlable cost is direct materlals. 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. Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, In addition to their usual salarles, to wark 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 $40 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 can Portsmouth earn 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. 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 ksep the upholstery shop open after normal working hours? Exerclse 13.6 (Algo) Managing a Constralned Resource [LO13.6] Portsmouth Company makes upholstered furnlaure. Its ofily varlable cost is direct materlals.-The demand for the company's products far exceeds lis manufacturing capacity. The botileneck (or constraint) In thie:production process isupholsterylaborihours. Information concerning three of Portsmouth's products appears below. 1. Porsmouth 15 considering paying its uphoistery libboris's houily compensation, In iddition to their usual salarles, to work overime. Assuming that this extra time would be used to produce sofas. up to how much of an overtime rate perhour should the-company be willing to pay to keep the upholstery shop apen after rormalworking hours? 2 A small nearby upholstering compan; has offered to upholster fumlure for Portsmouth at a pilice of \$40 per hour The management of Porsmouth is confident that this upholstering company's work is high quality and thelr craftsmen edn work afqulckly as Portsmouth's ovm craftsmen on the simpler upholstering Joos such as the Love Seat How:much additional contributlon margin per hourcan Porsmouth earnif it hires the nearby uploolsteing company to make Love Seats? 3. Should Portsmouth hire the nearby uphiolstering company? Complete this question by entering yourianswers in the tabs below. A small nearby upholstering companyhas offered to upholster furniture for Portsmouth at a price of $40 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 simplerupholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmoyth earn if it hires the nearby upholstering company to make Love Seats