Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow: Sales price (per unit) Costs (per unit): ClashSlash $250 $172 Direct materials Direct labor 68 42 36 Variable factory overhead (@ $15 per DLH) 45 Allocated fixed factory overhead (based on DLHs) Marketing expenses (all variable) Total costs Operating income (per unit) 285 60 15 36 12 35 32 220 161 $30 $11 There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per direct labor hour? O Slash, $23.00 O Clash, $30.00 O Clash, $11.00.

Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow: Sales price (per unit) Costs (per unit): ClashSlash $250 $172 Direct materials Direct labor 68 42 36 Variable factory overhead (@ $15 per DLH) 45 Allocated fixed factory overhead (based on DLHs) Marketing expenses (all variable) Total costs Operating income (per unit) 285 60 15 36 12 35 32 220 161 $30 $11 There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per direct labor hour? O Slash, $23.00 O Clash, $30.00 O Clash, $11.00.

Name: Zap Video Inc. produces two basic types of video games, Clash and Sla
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Description: Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent datafollow:Sales price (per unit)Costs (per unit):ClashSlash$250 $172Direct materialsDirect labor68 4236Variable factory overhead (@ $15 per DLH) 45Allocated fixed fa

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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