Hassel Company manufactures two different products, X and Y.The company has 100 pounds of materials and 300 direct labor hours available for production. The time requirements and contribution margins per unit are as follows:

-What is the equation for the constraint on direct labor?
A) $1X + $2Y £ 300
B) $4X + $2Y £ 100
C) $4X + $5Y £ 100
D) $4X + $2Y £ 300

Question

Hassel Company manufactures two different products, X and Y.The company has 100 pounds of materials and 300 direct labor hours available for production. The time requirements and contribution margins per unit are as follows:
 
-What is the equation for the constraint on direct labor?
A) $1X + $2Y £ 300 
B) $4X + $2Y £ 100 
C) $4X + $5Y £ 100 
D) $4X + $2Y £ 300

Quizplus · Accepted Answer

The constraint on direct labor is based on the available direct labor hours, which are 300. The time requirements per unit of X and Y are 2 and 1 direct labor hours, respectively. Therefore, the equation for the constraint on direct labor is:
2X + Y ≤ 300
Multiplying both sides by 2, we get:
4X + 2Y ≤ 600
This matches answer choice D, so the best choice is D.

Hassel Company Manufactures Two Different Products, X and Y