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pression Bishoy (RC) manufactures a hoe of speed bumps Demand for the company's produc nd production mix for the coming year The company provided the
pression Bishoy (RC) manufactures a hoe of speed bumps Demand for the company's produc nd production mix for the coming year The company provided the following data Product Danand sod year (units) Selling price Direct materials Direct labor Direct labor hours per unit The following additional information is available Small humps AZE 50.000 $16.70 $4.10 $6.40 0.40 Medow bongs VALE 35,000 325,000 57660 51160 56 44 $1.20 $11.20 $1.30 070 02 a. The company's plant has a capacity 99,000 direct labor-hours per year on a single shift basis. The company's present employees and epopet can produce all the b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year Fixed cost total $520,000 per year. Variable overhead costs are $2 per direct labor hour d. All the company's nonmanufacturing costs are fixed Required 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's three products? 2. Assuming that direct labor-hours is the company's constraining resource, what is the contribution margin per direct labor bou for each of the copy's the product k them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource the c For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt Ex Av I. xx < +] "T BBY E
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