nedd resolution to problems 321335

1. 2. 3. 4. 5. 6. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Lee company has met all production requirements for the month and has an opportunity to manufacture additional units with its excess capacity. Unit prices and costs for the product lines are below. Plain Regular Super Selling price $40 $55 $65 Direct Material 12 16 22 Direct labor @$20/hr 10 15 20 Variable Overhead 8 12 16 Fixed overhead 6 7 8 Variable overhead applied on the basis of labor dollars, whereas fixed overhead is applied on the baisis of machine hours. There is sufficient demand for the additional manufacture of all products. Required: If Lee company has excess capacity and can add more labor as needed (i.e neither machine labor s a constraint).. which productis the most attractive produce If Lee company has excess machine but a limited amount of labor time available,which product or products should be manufactured in excess capacity.