Antlers, Inc. produces a single product that sells for $150 per unit. The product is processed through the Cutting and Finishing departments. Additional data for these departments are as follows:
|
Cutting |
Finishing |
|
|
Annual capacity (36,000 direct labor hours available in each department) |
180,000 units |
135,000 units |
|
Current production rate (annualized) |
108,000 units |
108,000 units |
|
Fixed manufacturing overhead |
$1,296,000 |
$1,944,000 |
|
Fixed selling and administrative expense |
$ 864,000 |
$1,296,000 |
|
Direct materials cost per unit |
$ 45 |
$ 15 |
The current production rate is the budgeted rate for the entire year. Direct labor employees earn $20 per hour and the company has a “no layoff” policy in effect. What is the amount of the throughput contribution per unit as computed using the theory of constraints?
- $90.00
- $76.67
- $46.67
- $26.67