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Portsmouth Company makes upholstered fumiture its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck

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Portsmouth Company makes upholstered fumiture its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours information concerning three of Portsmouth's products appears below: Required: 1. Portsmouth is considering plying its upholstery laborers hourly compensotion, in addition to ther usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas. up to how much of an overtime rate per hour should the compary be wiling to poy to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering compony has offered to upholster furniture for Portsmouth at a price of $45 per hour. The management of Portsmouth is confident that this upholsteting company's work is high quality and ther crofsmen can work as quickly as Portsmouth's owri creftsmen on the simpler upholstering jobs such as the Love Seot How much odditional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to moke Love Sents? 3 Should Portsmouth hire the nearby upholstering company? (. Answeris not complete. Complete this question by entering your answers in the tabs below. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salarles, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normai working hours? Portsmouth Comparyy makes upholstered furniture: Its only variable cost is direct materials. The demand for the companys products far exceeds its manufacturing capacity. The bottleneck (or constraint in the production process is upholstery labor-hours. information concerning three of Portsmouth's products appears below Required: 1. Portsmouth is considering poying its uphoistery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the uphotstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furnture for Portsmouth at a price of $45 per hour. The management of Portsmouth is confident that this uphoistering company's work is high quality and their croftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much add tional contribution margin per hour can Portsmouth eam if it hires the nearby upholstering company to make Love Seots? 3. Should Portsmouth hire the nearby upholstering company? Answer is not complete. Complete this question by entering your answers in the tabs below. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $45 per hour. The management of Portsmouth is confident that this upholstering company's work is figh qualfy and their craftsmen can work as quidiy as Portsmouths own craftsmen on the simpler upholstering jobs such as the Love Seat How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make tove Seats

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