Home ModelDeluxe ModelPro Model

Selling price ...............................$58$65$80

Direct material ........................... 162019

Direct labor ($10 per hour) ...101520

Variable overhead ..................... 8 1216

Fixed overhead ......................... 16515

1. If Carpenter's Mate, Inc. has excess machine capacity and can add more labor as needed (i.e., neither machine capacity nor labor is a constraint), the excess production capacity should be devoted to producing which product? (Assume that the excess capacity will be used for a single product line.)

2. If Carpenter's Mate has excess machine capacity but a limited amount of labor time, the excess production capacity should be devoted to producing which product or products? if the Contribution margin per direct-labor hour, Deluxe Model: $12