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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)
Question 1
Reynoso Corporation manufactures titanium and aluminum tennis
racquets. Reynoso‘s total overhead costs consist of assembly costs and
inspection costs. The following information is available:
Cost Titanium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $60,000