Exercise 19-12 (Part Level Submission) Dalton Inc. produces and sells three prod

Question

Exercise 19-12 (Part Level Submission)

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

Product
D
E
F
Selling price $192.4 $321.8 $261.2
Direct labor costs 33.8 101.4 41.6
Other variable costs 91 80 146

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 $13.

[Collapse question part]

(a)

Determine the number of direct labor hours per unit. (Round answers to 1 decimal place, e.g. 1.5.)

Direct labor
Product D
hours per unit
Product E
hours per unit
Product F
hours per unit

Explanation / Answer

Answer:-

Dalton Inc. Calculation of no. of direct labor hours per unit Products D E F Direct labor costs per unit (a) $33.80 $101.40 $41.60 Direct labor hourly rate (b) $13 $13 $13 No.of direct labor hours per unit (c=a/b) $2.60 $7.8 $3.2

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