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Negreanu Tables Ltd. Manufactures three types of tables: wooden, plastic, and glass-surfaced. Data on price and costs for the units are shown below. The allocated
Negreanu Tables Ltd. Manufactures three types of tables: wooden, plastic, and glass-surfaced. Data on price and costs for the units are shown below. The allocated fixed cost, which is fixed manufacturing overhead, is allocated to the three products using a rate of $1.5 per direct labor hour consumed by the product. There are 1, 200 uncommitted hours of direct labor that can be allocated to manufacturing more products. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Which one of the three products should be produced using the available direct labor hours? Assume that Negreanu Tables will be within capacity to produce and sell the additional units. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Direct labor hours used: Contribution Margin per direct labor hour for a unit of: Therefore, produce the
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