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Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department. Both labor and machine time are applied to the products. Bakkers management is planning its production schedule for the next several months. There are labor shortages in the community. Some of the machines will be out of service for extensive overhauling. Available machine and labor time for each of the next 6 months is listed below.

Monthly Capacity Availability
Normal machine capacity in machine hours	3,500
Capacity of machines being repaired in machine hours	(500)
Available machine capacity in machine hours	3,000
Labor capacity in direct labor hours	4,000
Available labor in direct labor hours	3,700

Labor and Machine
Specifications per Unit of Product
Product		Labor and Machine Time
611		Direct labor hours	2
		Machine hours	2
613		Direct labor hours	1
		Machine hours	1
615		Direct labor hours	2
		Machine hours	2

The Sales Departments forecast of product demand over the next 6 months is presented below.

Product	Monthly Sales Volume (in units)
611	500
613	400
615	1,000

Bakkers inventory levels will not be increased or decreased during the next 6 months. The unit price and cost data valid for the next 6 months are presented below.

	Product
	611	613	615
Unit costs:
Direct material	$ 7	$ 13	$ 17
Direct labor	12	6	12
Variable overhead	27	20	25
Fixed overhead	15	10	32
Variable selling	3	2	4
Unit selling price	$196	$123	$167

What is product 615s contribution per machine hour?

• A.$54.50
• B.$109
• C.$167
• D.$58

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