The following are the selling price, variable costs, and contribution margin for one unit of each...

  
 

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The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Compan B, and C: Selling price Variable costs: Direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin Contribution margin ratio A $60.00 31.20 10.00 2.00 43.20 $16.80 28% Product B $120.00 60.00 20.00 4.00 84.00 $36.00 30% C $110.00 72.90 8.00 1.60 82.50 $ 27.50 25% Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. Th is $4 per hour, and only 3,780 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) Contribution margin per labour hour A O Product C O Product A O Product B B C 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? vertime wages, more than 3,780 hours of direct labour time can be made available next week. Up to how much should be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round calculations. Round your answer to 2 decimal places.) nt per hour The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Compan B, and C: Selling price Variable costs: Direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin Contribution margin ratio A $60.00 31.20 10.00 2.00 43.20 $16.80 28% Product B $120.00 60.00 20.00 4.00 84.00 $36.00 30% C $110.00 72.90 8.00 1.60 82.50 $ 27.50 25% Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. Th is $4 per hour, and only 3,780 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) Contribution margin per labour hour A O Product C O Product A O Product B B C 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? vertime wages, more than 3,780 hours of direct labour time can be made available next week. Up to how much should be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round calculations. Round your answer to 2 decimal places.) nt per hour

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