Portimouth Company makes upholstered furnhure. Its only vanable cost is direct mulerials. The demand for the compary's products far exceeds its manufacturng capacty The bottleneck for constraing in the production process is upholstery labor hours Information conceining three of Portsmouth's products appears below. Required: 1. Portsmoith is considering paykg its upholstery labores houly compensation, in addition to their usual salyries, to work overtume. Assuming the extra time hould be used to produce solas, up to how much of an overtime rate per hour thould the company be Wiling to pay to keep the upholstery shop open afler nocmal working hours? 2 A smal neartiy upholsterng coerpany has ofered to upholstec furniture for Portsmouth at a price of $45 per hour the managemens own cioltsmen on the umpler upholstering jobs sucti as the Love Seat How much oddelonal contribution margin per hour can Portsmouth eam it it hires the nearby upholstering compary to make Love Seats? 3 Should Portsmouth hire the neatby upholsteting compary? Complete bils question toy entering your answers in the tobs helow. compary be niling to puy to keep the upbelstery thop open after normal werking hours? Portumouth Company makes uphostered fumbute its only variable cost is diveet materials. The demand for the companys products far exceeds tis manufactieing capocity. The bottleneck for cortutraint) in the peoduction process is upholstery labor hours information conceming three of Portsmouthi products appears below. 1. Poitsmouth is considerma poping its upholstery laborens houly compensation, in addition to their usual sataries, to work overtime Assuming this extea tibe would be ised to produce sofas, up to how much of an overtime tate per hour should the company be wiling to pay to keep the upholstery thop open after normal working hours? of Portsmovith is confident ihis uphohteng company work is high qualify. and as craftsmen can work as quickly as Portsmouthis Portsmouth eam if 2 hires the nearby upholstesing compary to muke Lave Seats? 2. Should fortsmouth hire the neswby Gpholisering compary? Complete this question thy entering your answers in the tabs lielow, Portsmouth Company makes upholstered furniture its only vanable cost is direct materials. The demand for the company's products lar exceeds its manufacturing capacity. The botteneck for constraint in the production process is upholstery laborhours Information concerning thire of Portsmouth's prodicts appears below. Hequired: 1. Portsmouth is considering paying its upholstery laborers bourly compensabon, in addition to their usual salaries, fo work overtime Assuming this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be Wiling to pay to keep the upholstery shop open after normal woting hours? 2. A small nearby upholsteting company has offered to upholster furnture for Portsmouth at a price of 545 per hour The marngement of Portsmouth is confident this upholstering compary's work is high quality, and is craftsmen can work as quickly as Portsmouth? own craftsmen on the smpler upholstering jobs such as the Love Seat. How much additional contribution margin per hocir can Portsmouth eam if it hires the nearby upholstering company to make Love Seats? 3. Should Forsmouth hire the nearby upholstering compary? Complete this question hy entering your answers in the tabs below, Should Portsmeuth hise the nearby uphostering company
