Ooo-La-La Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product lines follow.

PlainRegularSuperSelling price$95$115$120Direct material232733Direct labor (at $10 per hour)202525Variable overhead192327Fixed overhead171819

Variable overhead is applied on the basis of direct labor dollars, whereas fixed overhead is applied on the basis of machine hours. There is sufficient demand for the additional manufacture of all products.

Required:

A.If Ooo-La-La has excess machine capacity and can add more labor as needed (i.e., neither machine capacity nor labor is a constraint), which product is the most attractive to produce?

B.If Ooo-La-La has excess machine capacity but a limited amount of labor time available, which product or products should be manufactured in the excess capacity?

Ooo-La-La Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product lines follow. Plain Healer agent Selling price $95 $115 $120 Direct material 23 27 33 Direct labor [at Sl per hour} 20 25 25 Variable overhead 19 23 2? Fixed overhead 1? 18 19 Variable overhead is applied on the basis of direct labor dollars, whereas fixed overhead is applied on the basis of machine hours. There is sufficient demand for the additional manufacture of all products Required: A. If lCloo-La-La has excess machine capacity and can add more labor as needed (Le... neither machine capacity nor labor is a constraint], which product is the most attractive to produce? B. lfOoo-La-La has excess machine capacity but a limited amount of labor time available, which product or products should be manufactured in the excess capacity