Custom Furniture Manufactures a Small Table and a Large Table

question 13

Multiple Choice

Custom Furniture manufactures a small table and a large table.The small table sells for $1000,has variable costs of $560 per table and takes ten direct labour hours to manufacture.The large table sells for $1500,has variable costs of $960 and takes eight direct labour hours to manufacture.Calculate the contribution margin per direct labour hour for the large table.

• A) $54 per direct labour hour
• B) $55 per direct labour hour
• C) $68 per direct labour hour
• D) $44 per direct labour hour

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