Exercise 20-12 (Part Level Submission) Product D E F (a) Direct labor SHOW SOLUT
ID: 2542125 • Letter: E
Question
Exercise 20-12 (Part Level Submission)
Product
D
E
F
(a)
Direct labor
SHOW SOLUTION
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(b)
Product D
Product E
Product F
Exercise 20-12 (Part Level Submission)
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below.Product
D
E
F
Selling price $ 197.3 $ 308.5 $ 264.2 Direct labor costs 37.8 107.1 44.8 Other variable costs 92 79 149The company has 2,100 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 $ 14 .
Explanation / Answer
Solution a:
Solution b:
Computation of direct labor hours per unit Particulars Product D Product E Product F Direct labor cost per unit $37.80 $107.10 $44.80 hourly rate of direct labor $14.00 $14.00 $14.00 Direct labor hour per unit 2.70 7.65 3.20Related Questions
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