Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood carvers, the corporation has had a shortage of available labor hours. The following per unit data relates to the three products of the corporation:                   Letter Openers Elvis Statues Candle Holders   Sales price      $30 $80 $42   Variable costs        $20 $40 $20   Labor hours required        1 6 2 Assume that Wood Carving only has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. 1. The contribution margin per direct labor-hour expended on Letter Openers, Elvis Statues, Candle Holders 2. the total direct labor-hours that will be required to produce the units estimated of these three products to be sold during the coming year ? 3. How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers,  Elvis Statues, Candle Holders ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood carvers, the corporation has had a shortage of available labor hours. The following per unit data relates to the three products of the corporation:              

 

 

Letter Openers

Elvis Statues

Candle Holders

 

Sales price     

$30

$80

$42

 

Variable costs       

$20

$40

$20

 

Labor hours required       

1

6

2

Assume that Wood Carving only has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month.

1. The contribution margin per direct labor-hour expended on Letter Openers, Elvis Statues, Candle Holders

2. the total direct labor-hours that will be required to produce the units estimated of these three products to be sold during the coming year ?

3. How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers,  Elvis Statues, Candle Holders ? 

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