Custom Furniture Manufactures a Small Table and a Large Table

question 128

Multiple Choice

Custom Furniture manufactures a small table and a large table. The small table sells for $900, has variable costs of $560 per table, and takes ten direct labor hours to manufacture. The large table sells for $1,500, has variable costs of $980, and takes eight direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the large table.

• A)$65 per direct labor hour
• B)$66 per direct labor hour
• C)$67 per direct labor hour
• D)$68 per direct labor hour

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