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Assume the following cost structure regarding Snapir's production of trombones and trumpets, that additional finishing labor increases capacity within the finishing department, and that


 

Assume the following cost structure regarding Snapir's production of trombones and trumpets, that additional finishing labor increases capacity within the finishing department, and that Molding labor makes $20/hr while Finishing labor makes $15/hr: Direct Materials Molding Labor Cost Finishing Labor Cost Variable Overhead Allocated Fixed Overhead Trombones Trumpets $ 35.00 $ 20.00 $ 40.00 $ 30.00 $ 15.00 $ 30.00 $ 25.00 $ 35.00 $ 25.00 $ 25.00 a) Should Snapir focus on making trombones or on making trumpets? b) How much should Snapir be willing to pay for an additional hour of finishing labor?

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