Oscar Corporation produces and sells three products. Unit data concerning each product is shown below. 
The company has 2,000 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 $15.
Instructions
(a) Determine the number of direct labor hours per unit.
(b) Determine the contribution margin per direct labor hour.
(c) Determine which product should be produced and the total contribution margin for that product.
Definitions:
The Animal Mind
An area of study focused on understanding the cognitive processes and mental states of non-human animals, including perceptions, emotions, and problem-solving abilities.
Margaret Floy Washburn
An eminent early American psychologist known for her work in animal behavior and motor theory development.
William James
A pioneering American psychologist and philosopher recognized for his contributions to psychology and education.
Introspection
The examination of one's own thoughts and feelings.
Q3: A CVP income statement is frequently prepared
Q21: Tex's Manufacturing Company can make 100 units
Q25: Nancy Lake owns a small department store
Q41: In a decision to retain or replace
Q43: Kipling Company has sales of $1,500,000 for
Q47: Lark Corp.'s direct materials budget shows total
Q54: Ecker, Inc. produces milk at a total
Q182: Which of the following manufacturing cost elements
Q183: The last step in activity-based costing is
Q184: When deciding whether or not to replace