Marvis Lumber Mill produces large wooden beams for construction. Lately, a labor shortage has caused the amount of direct labor hours to diminish to a point where production will likely fall next quarter. Production supervisors are also worried that one of the saw mills may not make it to the end of the quarter, resulting in a reduction of machine hours. Data for Marvis Lumber Mill's products are below: Product Douglas Fir Cedar Oak White Pine Hemlock Price $ 80 $ 160 $ 120 $ 50 $ 220 Variable Cost $ 35 $ 110 $ 55 $ 18 $ 120 Labor Hours per Unit 0.2 0.3 0.25 0.4 0.5 Machine Hours per Unit 1 2 1.5 0.5 5 Demand for the Quarter 20,000 9,000 15,000 12,000 5,000 Available Labor Hours 14,000 Available Machine Hours 75,000 Required:

Determine the total contribution for each type of beam if direct labor hours are likely to diminish due to a labor shortage.

Determine the total contribution for each type of beam if one of the saw mills could not make it to the end of the quarter, resulting in a reduction of machine hours.

Marvis Lumber Mill produces large wooden beams for construction. Lately, a labor shortage has caused the amount of direct labor hours to diminish to a point where production will likely fall next quarter. Production supervisors are also worrled that one of the saw mills may not make it to the end of the quarter, resulting in a reduction of machine hours. Data for Marvis Lumber Mill's products are below: Required: 1. Determine the total contribution for each type of beam if direct labor hours are likely to diminish due to a labor shortage. 2. Determine the total contribution for each type of beam If one of the saw mills could not make it to the end of the quarter, resulting in a reduction of machine hours. Required: Fill out the charts and answer questions below concerning the constrained resources. Based on these calculations, put the beam types in priority order in accordance with profitability. \begin{tabular}{|c|} \hline 17 \\ \hline 2F \\ \hline 3r \\ \hline 47 \\ \hline 57 \\ \hline \end{tabular} Assume Labor Hours are the constrained resource and fill out the chart below: Based on these calculations, put the beam types in priority order in accordance with profitability. With Direct Labor hours as the constrained resource, fill out the chart below: Note: All numbers should be shown as positive numbers. Using the two prior charts above to make the calculations for remaining hours: \begin{tabular}{l} \hline Labor Hours Available \\ Less: Priority 1 Hours Demanded \\ Remaining Hours \\ Less: Priority 2 Hours Demanded \\ Remaining Hours \\ Less: Priority 3 Hours Demanded \\ \hline Remaining Hours \\ \hline Less: Priority 4 Hours Demanded \\ \hline Remaining Labor Hours \\ \hline \end{tabular} Fill out the chart below and use the final Remaining Hours above to calculate the units of the lowest priority product: Assume Machine Hours are the constrained resource and fill out the chart below: Based on these calculations, put the beam types in priority order in accordance with profitability. \begin{tabular}{|} \hline 1r \\ \hline 2r \\ \hline 37 \\ \hline 47 \\ \hline 57 \\ \hline \end{tabular} With Machine Hours as the constrained resource, fill out the chart below: \begin{tabular}{llllll|} \hline \multicolumn{1}{r}{ Product } & Douglas Fir Cedar & Oak & White Pine & Hemlock \\ \hline Demand & & & & \\ \hline Machine Hours per unit & & & & \\ \hline Total Machine Hours & & & & \\ \hline \end{tabular} Using the two prior charts above to make the calculations for remaining hours: \begin{tabular}{l} \hline Machine Hours Available \\ Less: Priority 1 Hours Demanded \\ Remaining Hours \\ Less: Priority 2 Hours Demanded \\ Remaining Hours \\ \hline Less: Priority 3 Hours Demanded \\ Remaining Hours \\ \hline Less: Priority 4 Hours Demanded \\ Remaining Machine Hours \\ \hline \end{tabular} Fill out the chart below and use the final Remaining Hours above to calculate the units of the lowest priority product