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Remaining Time 1 hour, 34 minutes, 36 seconds Question Completion Statue Ly Moving to another question will save the response Question 1 Bahrain Rubber Company
Remaining Time 1 hour, 34 minutes, 36 seconds Question Completion Statue Ly Moving to another question will save the response Question 1 Bahrain Rubber Company (BRC) manufactures a line of spend humps Demand for the company's products is rating, and management restance from you dete an economical sales and production mix for the coming year The company provided the following data Product Demand next year (units) Selling price Direct materials Direct labor Direct labor hours per unit Small bumps size 50,000 $16.70 $4.30 $6.40 040 Medan hamps se 35,000 $26.60 $6.44 $1120 0.70 Large humps site 125,000 5960 $3.20 $3.20 02 The following additional information is available 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 equipment can produce all the products b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year c. 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-hour for each of the company's three products Rank 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 in either case? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIY S Paragraph Arial XX I. 10pt v A + "T " Q BBD DELL
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