(Solved): Mountainburg Industries has developed two new products but has only enough plant capacity to intro ...

Mountainburg Industries has developed two new products but has only enough plant capacity to introduce one product during the current year. The following data will assist management in deciding which product should be selected. Product L Product W Direct materials $44 $36 18 15 30 10 Machining labor ($12 per hour) Assembly labor ($10 per hour) Variable overhead ($8 per hour) Fixed overhead ($4 per hour) Total Manufacturing Cost 36 18 18 9 $ 146 $ 88 $100 $ 170 Estimated selling price per unit Actual research and development costs $ 240,000 $ 175,000 Estimated advertising costs $ 500,000 $ 350,000 Mountainburg's fixed overhead includes rent and utilities, equipment depreciation, and supervisory salaries. Selling and administrative expenses are not allocated to individual products. Direct material costs for Mountainburg's two new products are: Multiple Choice Prime costs Conversion costs Opportunity costs Period costs