Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood carvers, the corporation has had a shortage of available labor hours. The following per unit data relates to the three products of the corporation: Letter Openers Elvis Statues Candle Holders Sales price $30 $80 $42 Variable costs $20 $40 $20 Labor hours required 1 6 2 Assume that Wood Carving only has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. 1. The contribution margin per direct labor-hour expended on Letter Openers, Elvis Statues, Candle Holders 2. the total direct labor-hours that will be required to produce the units estimated of these three products to be sold during the coming year ? 3. How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers, Elvis Statues, Candle Holders ?
Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood carvers, the corporation has had a shortage of available labor hours. The following per unit data relates to the three products of the corporation:
|
|
|
Letter Openers |
Elvis Statues |
Candle Holders |
|
|
Sales price |
$30 |
$80 |
$42 |
|
|
Variable costs |
$20 |
$40 |
$20 |
|
|
Labor hours required |
1 |
6 |
2 |
Assume that Wood Carving only has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month.
1. The contribution margin per direct labor-hour expended on Letter Openers, Elvis Statues, Candle Holders
2. the total direct labor-hours that will be required to produce the units estimated of these three products to be sold during the coming year ?
3. How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers, Elvis Statues, Candle Holders ?
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