Question: I need help with question 2&3. Question 3: By paying overtime wages more than 3850 hours of direct labour time can be made available next

I need help with question 2&3. Question 3: By paying overtime wages more than 3850 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 three products? ?

I need help with question 2&3. Question 3: By
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A, B, and C: Product D C Selling price $70.00 $130.00 $180.00 Variable costs: Direct materials 30 .50 51.00 114.00 Direct labour 12.00 32.00 24.00 Variable manufacturing overhead 3.00 8.00 6.00 Total variable cost 45. 50 91.00 144.00 Contribution margin $24.50 $ 39.00 $ 36.00 Contribution margin ratio 35%% 30% 20% 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 $8 per hour, and only 3,850 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.) CO U Contribution margin per labour hour 11.70 $ 7.20 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? O Product A O Product B Product C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!