Vandelay Industries is a designer and manufacturer of tiny houses. At this stage they manufacture two models. The Sam Malone and The Crane for which the following information is available: PER UNIT The Sam Malone The Crane Direct Materials 650 480 Direct Labor ($20/hr) 1,200 800 Variable OH ($10/mhr) 1,250 1,000 Fixed OH 750 800 Total Prod Cost per Unit 3,850 3,080 Sales Price per Unit $5,200 $4,000 Additional Information: Vandelay pays their direct labor employees on average $20 per hour. Variable Overhead is allocated to units by machine hours, with a predetermined overhead rate of $10 per hour. Vandelay's plant has a capacity for 1,000,000 labor hours (DLH). The company has received order requests for 15,000 units of the Sam Malone and 18,000 units of the Crane. The controller is analyzing the situation to determine how many Sam Malone and Crane style houses Vandelay should produce.
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