Oriole Inc produces 3 products and has 2,200 hours of labor available to build inventory. Data on direct labor hours and contribution margin per hour for each product is provided. Management must decide which product to produce to maximize total contribution margin. The product with the highest contribution margin per direct labor hour should be produced, and the total contribution margin for that product calculated.
Oriole inci produces and selts three products Unit data concerni.pdf
1. Oriole inci produces and selts three products: Unit data concerning each product is shown
below. The company has 2,200 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. (a) Your answer is correct. Determine the number of direct labor
hours per unit (Round arowers to 2 decimal places, e4. 52.75 .)
Your answer is correct. Determine the contribution margin per direct labor hour. (Round
intermediate calculation to 2 decimal ploces, eg. 52.75 . and final answers to 0 docimal places,
es. 52.) (c) Determine which product should be produced. Determine the total contribution
margin for that product. Total contribution margin