Custom Furniture Manufactures a Small Table and a Large Table

question 27

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 10 direct labor hours to manufacture.The large table sells for $1,500,has variable costs of $1,000,and takes eight direct labor hours to manufacture.Calculate the contribution margin per direct labor hour for the small table.

• A)$340 per direct labor hour
• B)$50 per direct labor hour
• C)$34 per direct labor hour
• D)$56 per direct labor hour

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Definitions:

Productively

Refers to producing goods or services in a way that makes the best use of resources like time, materials, and labor.

Rule-of-law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

English-speaking Heritage

Refers to the cultural and historical influence of English-speaking countries and their traditions.

Per-capita GNI

The gross national income of a country divided by its population, reflecting the average income of its citizens.