Underwood, Inc. manufactures two products. It currently has 5,600 hours of direct labor and 800 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Product A Product B Unit contribution margin $18.00 $15.00 Demand 2,600 units 1, 300 units Labor time 1/5 hour 1/4 hour Machine time 2 hour 1/4 hour What is the contribution margin per machine hour for Product B?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Chapter6: Activity-based, Variable, And Absorption Costing
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See question in picture . Multiple choice options as follows : A. $4.00 B.$15.00 C. $18.00 D.$60.00
Underwood, Inc. manufactures two products, It currently has 5,600 hours of direct labor and 800 hours of machine time available
per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.
Product A
Product B
Unit contribution margin
$18.00
$15.00
Demand
2,600 units 1,300 units
Labor time
1/5 hour
1/4 hour
Machine time
2 hour
1/4 hour
What is the contribution margin per machine hour for Product B?
Multiple Choice
$4.00
$15.00
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Transcribed Image Text:Underwood, Inc. manufactures two products, It currently has 5,600 hours of direct labor and 800 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Product A Product B Unit contribution margin $18.00 $15.00 Demand 2,600 units 1,300 units Labor time 1/5 hour 1/4 hour Machine time 2 hour 1/4 hour What is the contribution margin per machine hour for Product B? Multiple Choice $4.00 $15.00 < Prev 6 of 20 Next > 9:40 PM d) e 8 O 6 D a 3/21/202 す。 Home End Insert F7 F10 E R T S D F K M All All PriSc Cul の
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