Question

Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product...

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

Homework Answers

Answer #1
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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