Dalton Inc. produces and sells three products. Unit data
concerning each product is shown below.
Product |
||||||
D |
E |
F |
||||
Selling price | $181.00 | $283.20 | $233.00 | |||
Direct labor costs | 28.60 | 83.60 | 34.10 | |||
Other variable costs | 90.00 | 78.00 | 140.00 |
The company has 1,900 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 $11.
etermine the number of direct labor hours per unit.
(Round answers to 2 decimal places, e.g.
52.75.)
Direct labor |
|||
Product D | hours per unit | ||
Product E | hours per unit | ||
Product F | hours per unit |
Product | Direct Labor Cost Per unit | Direct Labor Hours Per unit | |
a | b | c=b/$11 | |
Peoduct D | $ 28.60 | 2.60 | hours per unit |
Peoduct E | $ 83.60 | 7.60 | hours per unit |
Peoduct F | $ 34.10 | 3.10 | hours per unit |
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