Dalton Inc. produces and sells three products. Unit data concerning each product

Question

Dalton Inc. produces and sells three products. Unit data concerning each product is shown below Product Selling price Direct labor costs Other variable costs $204.0 39.2 92 $320.7 107.8 82 $256.5 43.4 148 The 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 (a) Your answer is correct. Determine the number of direct labor hours per unit. (Round answers to 1 decimal place, e.g. 1.5.) Direct labor Product D Product E Product F 2.8 hours per unit 7.7 hours per unit 3.1 hours per unit

Explanation / Answer

Product D Product E Product F Contribution margin per unit 72.8 130.9 65.1 Direct labor hours 2.8 7.7 3.1 Contribution margin per direct labor hour 26 17 21

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