potomheducation.com/es/index.ht.com.contexternal browarno SPA HW Chpt 1 Se 5 Portsmouth Company makes upholstered furniture. Its only vattable cost is direct materials. The demand for the company's products fat exceeds its manufacturing capacity. The bottleneck for constant in the production process is upholstery labor hours. Information concerning three of Portsmouth's products appears below. 125 point Sota Selling price 51.425 12,130 1,500 Variable cost per unit Ssso $ 1.150 $ 1.050 Upholstery lato per unit hours hoors hours Required: 1 Portsmouth is considering paying its upholstery 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 upholstery shop open after normal worlong hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $56 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickdy as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour con Portsmouth camn ir it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required Required Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual saloties, 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 normal working hours? Main or rate per hour 5 Portsmouth Company makes upholstered furniture. 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. sota Selling price per unit Variable cost per unit Upholstery labor hours per unit Mecliner $ 1,426 SBS0 hours $ 2,130 $1,350 13 hours Love Suat $ 1,560 $ 1,050 6 hours Required: 1. Portsmouth is considering paying its upholstery 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 upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $56 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's 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 Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Portsmouth is considering paying its upholstery 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 upholstery shop open after normal working hours
