Exercise 20-12 (Part Level Submission) Dalton Inc. produces and sells three prod
ID: 2525529 • Letter: E
Question
Exercise 20-12 (Part Level Submission) Dalton Inc. produces and sells three products. Unit data concerning each product is shown below Product Selling price Direct labor costs Other variable costs $201.9 32.4 102 $302.3 92.4 79 $ 254.0 38.4 142 The company has 2,500 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 $ 12. Determine the number of direct labor hours per unit. (Round answers to 1 decimal place, e.g. 1.5.) Direct labor Product D Product E Product F hours per unit hours per unit hours per unit LINK TO TEXT VIDEO: SIMILAR EXERCISEExplanation / Answer
(a) Direct labor:
Product D = $32.4 / $12 = 2.7 hours per unit
Product E = $92.4 / $12 = 7.7 hours per unit
Product F = $38.4 / $12 = 3.2 hours per unit
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