mment 10 (Ch 12) Relevant Costs for Decision... Saved Help Save & CH B The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A B. and C: Product 580.00 $150.00 $150.00 Selling price Variable costs: Direct materials Direct labour variable manufacturing overhead ook 37.00 10.00 5.00 30.00 40.00 20.00 63.00 30.00 15.00 Total variable cost int 52.00 90.00 108.00 Contribution margin $28.00 $ 60.00 $42.00 rences Contribution margin ratio 4er 28% Due to a strike in the plant of one of its competitors, demand for the company's products for exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate Is $10 per hour and only 3,750 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) B c Contribution margin per labour hour Pret 2. Which orders would you recommend that the company work on next week--the order for product A, product B. or product C? sirences Product A Product Product B 3. By paying overtime wages, more than 3.750 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wager as long as there is unfilled demand for the three products? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Mamum amount per hour