Problem
A company manufactures two products as follows:
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B1
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B2
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Unit sales price
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$225.00
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$210.00
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Less:
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|
|
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Direct material
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$20.00
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$15.00
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Direct labour
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$100.00
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$60.00
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Variable overhead
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$3.00
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$4.00
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Variable selling and administrative costs
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$2.00
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$5.00
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The same employees work on both products and earn the same wage rate of $22.56 per hour.
What is the unit contribution per hour for B1?