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Selling price $200 $300 $250
Direct labor costs 30 80 35
Other variable costs 95 80 145
The company has 2,000 hours of labor available to build inventory in
anticipation of the company's peak season. Management is trying to
decide which product should be produced. The direct labor hourly rate is
$10.
Instructions
A. Determine the number of direct labor hours per unit.
B. Determine the contribution margin per direct labor hour.
C. Determine which product should be produced and the total
contribution margin for that product.
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ACC 560 Week 4 Quiz 2 (Chapter 4)
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ACC 560 Week 4 Quiz 2 (Chapter 4)