1) Number of direct labor hour per unit
Direct labor hour per unit | |
Product D | 36.4/14 = 2.6 |
Product E | 107.8/14 = 7.7 |
Product F | 43.4/14 = 3.1 |
2) Contribution margin per hour
Product D | Product E | Product F | |
Contribution margin per unit | 67.60 | 138.60 | 62 |
Labor hour per unit | 2.6 | 7.7 | 3.1 |
Contribution margin per hour | 26 | 18 | 20 |
3) Product D should be manufactured
4) Total Contribution margin = 2500*26 = 65000
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Selling price Direct l...
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $204.0 $320.7 $256.5 Direct labor costs 39.2 107.8 43.4 Other variable costs 92 82 148 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. Determine the number of direct labor hours per unit....
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $201.20 $310.50 $255.80 Direct labor costs 33.80 100.75 41.60 Other variable costs 105.00 78.00 147.00 The company has 2,300 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $13. Determine the number of direct labor hours per unit....
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