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: Sales price Variable costs Labor hours required Candle Letter Openers Elvis Statues Holders $30 $80 $42 $20 $40 $20 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. the contribution margin per direct labor-hour expended on Letter Openers the contribution margin per direct labor-hour expended on Elvis Statues the contribution margin per direct labor-hour expended on Candle Holders What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage? 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 How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers? How many hours would you allocate the 1,800 direct labor-hours of capacity to Elvis Statues? How many hours would you allocate the 1,800 direct labor-hours of capacity to Candle Holders? Choose... Choose... Choose... Choose... Choose... Choose... Choose... Choose...
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: Sales price Variable costs Labor hours required Candle Letter Openers Elvis Statues Holders $30 $80 $42 $20 $40 $20 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. the contribution margin per direct labor-hour expended on Letter Openers the contribution margin per direct labor-hour expended on Elvis Statues the contribution margin per direct labor-hour expended on Candle Holders What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage? 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 How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers? How many hours would you allocate the 1,800 direct labor-hours of capacity to Elvis Statues? How many hours would you allocate the 1,800 direct labor-hours of capacity to Candle Holders? Choose... Choose... Choose... Choose... Choose... Choose... Choose... Choose...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give image format and solve with explanation
Transcribed Image Text: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:
Sales price
Variable costs
Labor hours
required
Candle
Letter Openers Elvis Statues Holders
$30
$80
$20
$40
$42
$20
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.
the contribution margin per direct labor-hour expended on Letter Openers
the contribution margin per direct labor-hour expended on Elvis Statues
the contribution margin per direct labor-hour expended on Candle Holders
What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage?
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
How many hours would you allocate the 1.800 direct labor-hours of capacity to Letter Openers?
How many hours would you allocate the 1,800 direct labor-hours of capacity to Elvis Statues?
How many hours would you allocate the 1,800 direct labor-hours of capacity to Candle Holders?
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
Choose...
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