Selling price Variable costs: Direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin Contribution margin ratio...

 

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Selling price Variable costs: Direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin Contribution margin ratio Contribution margin per labour hour O Product A O Product B O Product C A $150.00 A 73.50 18.00 4.50 96.00 $ 54.00 36% Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $9 per hour, and only 3,920 hours of labour time are available each week. Maximum amount 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.) Product B $150.00 per hour 45.00 36.00 9.00 90.00 $60.00 40% B C $130.00 73.70 18.00 4.50 96.20 $ 33.80 26% с 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? 3. By paying overtime wages, more than 3,920 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Question Part 1 contribution margin No of direct labour ho View the full answer