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Rubber Company (BRC) malas a line of spend hmps Ded the ' ical sales and production mis for the coming year The copy graded the
Rubber Company (BRC) malas a line of spend hmps Ded the ' ical sales and production mis for the coming year The copy graded the bling sking price Direct materials Duecs labor Direct labor hours per unit The following additional information is available 50.000 $1670 $4.30 3640 040 15000 $3600 36.44 1110 070 325306 5000 1136 913 a. The company's plant has a capacity 99,000 direct labor-hours per year on a single shaft base The compey's peopley put a pro b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming yea Fixed cost total $520,000 per year Variable overhead costs are $2 per direct labor bo 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 dues lab of ach of the company's ph 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 canned ALT+F10 (PC) or ALT+FN+F10 (Mac) sc
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