Question 4 Bahrain Rubber Company (BRC) manufactures a line of speed bumps. Demand for the company's...

  

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Question 4 Bahrain Rubber Company (BRC) manufactures a line of speed bumps. Demand for the company's products is increasing, and management respuesta est determining an economical sales and production mix for the coming year. The company provided the following data Product Small humps size 50,000 $16.70 $4.30 56.40 0.40 Demand next year (units) Selling price Direct materials Direct labor Direct labor hours per unit Medium humps size 35,000 $26.60 56.44 $11.20 0.70 325.300 39.60 53.20 02 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 present employees and equipment can produce all the products. 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 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-hour for each of the company's three products? Rank them in terms of profitability? d. All the company's nonmanufacturing costs are fixed. per year. Variable overhead costs are $2 per direct labor-hour ngen during the coming year 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 duct laber-hour for each of the products? Rank them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable wie of the contenedor i cau For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac) Question 4 Bahrain Rubber Company (BRC) manufactures a line of speed bumps. Demand for the company's products is increasing, and management respuesta est determining an economical sales and production mix for the coming year. The company provided the following data Product Small humps size 50,000 $16.70 $4.30 56.40 0.40 Demand next year (units) Selling price Direct materials Direct labor Direct labor hours per unit Medium humps size 35,000 $26.60 56.44 $11.20 0.70 325.300 39.60 53.20 02 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 present employees and equipment can produce all the products. 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 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-hour for each of the company's three products? Rank them in terms of profitability? d. All the company's nonmanufacturing costs are fixed. per year. Variable overhead costs are $2 per direct labor-hour ngen during the coming year 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 duct laber-hour for each of the products? Rank them in terms of profitability? 3. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable wie of the contenedor i cau For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac)

Answer rating: 100% (QA)

Req 1 DLH per unit Multiply VOH per DLH Variable oH per unit Req 2 Selling price Less vari... View the full answer