Use the information below to answer the following question(s) :
Cozy Cat Furniture manufactures two products: cat trees and cat condos. The following data are available:
The company can manufacture two cat trees per machine hour and one cat condo per machine hour. The company's production capacity is 900 machine hours per month.
-What is the contribution margin per machine hour for cat trees at Cozy Cat Furniture ?
Definitions:
Assembly Department
A section of a manufacturing firm where products or components are assembled before final packaging or shipping.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activity levels.
Direct Labor-Hours
Overall work duration of employees directly involved in the production process.
Machine-Hours
A measure of production time that indicates the total hours a machine is in operation during a specific period.
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