Question: please , I only have 10 minutes , I beed the answers for 2 and 3 , pleeeaaase ffaast Question 3 Bahrain Rubber Company (BRC)



Question 3 Bahrain Rubber Company (BRC) manufactures a line of speed humps. Demand for the company's products is increasin an economical sales and production mix for the coming year. The company provided the following data: Product Small humps size Medium humps size Demand next year (units) 50,000 35,000 Selling price $16.70 $26.60 Direct materials $4.30 $6.44 Direct labor $6.40 $11.20 Direct labor hours per unit 0.40 0.70 The following additional information is available: a. The company's plant has a capacity 99,000 direct labor-hours per year on a single-shift basis. The company's b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year c. Fixed cost total $520,000 per year. Variable overhead costs are $2 per direct labor-hour d. All the company's nonmanufacturing costs are fixed Required Less than hal RI RIL 10 points Saved f speed humps. Demand for the company's products is increasing, and management requests assistance from you in determining ear. The company provided the following data: Small humps size Medium humps size Large humps size 50.000 35,000 325,000 $16.70 $26.60 $9.60 $4.30 $6.44 $3.20 $6.40 $11.20 $3.20 0.40 0.70 0.2 or hours per year on a single shift basis. The company's present employees and equipment can produce all three products. main unchanged during the coming year. costs are $2 per direct labor-hour. c. Fixed cost total $520,000 per year. Variable overhead costs are $2 per direct labor-hour d. All the company's nonmanufacturing costs are fixed Required 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's three products? 2. Assuming that direct labor-hours is the company's constraining resource, what is the contribution margin per direct labor-hou them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrai For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), Ios Paragraph Arial 10pt . : ABC X X T Te TT * 22 V FI - PE 13 6) 1) JU $11 20 0.70 S6 40 040 0.2 on is available: apacity 99,000 direct labor hours per year on a single shift basis. The company's present employees and equipment can produce all three products chour is expected to remain unchanged during the coming year year Variable overhead costs are $2 per direct labor bour acturing costs are fixed cost is incurred to manufacture one unit of each of the company's three products? murs is the company's constraming resource, what is the contribution margin per direct labor-hour for each of the company's three products? Rank contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? LT4N+F10 (Mac) Arial 10pt A 2 X QQ V I. Hf XX, r [+ 1 2 2
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
