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5 The Walton Toy Company manufactures a line of dolls and a sewing kit Demand for the company's products is increasing, and management requests assistance

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5 The Walton Toy Company manufactures a line of dolls and a sewing kit Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: 10 po Spoed Demand Balling year Price tunica per te 60,000 $19.50 53.000 56.00 $5,000 $33.00 52.000 13.00 Direct zabor 5 2.80 Product Debbie Trial Eh Direct Materials $5.30 32.10 $7.96 33.00 56.20 0 5.20 $ 3.60 $ 0.00 PER The following additional information is available: a. The company's plant has a capacity of 103.250 direct laber-hours per year on a single-shift basis. The company's present employees and equipment can produce a live products b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year, c. Fixed manufacturing costs total $620.000 per year. Variable overhead costs are $5 per direct laborhout d. All of the company's nonmanufacturing costs are forced e. The company's finished goods inventory is negligible and can be ignored Required: 1. How many direct labor hours are used to manufacture one unit of each of the company's five products 2. How much variable overhead cost is incurred to manufacture one unit of each of the company's ive products? 3. What is the contribution margin per direct labor hour for each of the company's five products? 4. Assuming that direct labor hours is the company's constraining resource, what is the highest total contribution margin that the company can earn it makes optimal use of its constrained resourco? 5. Assuming that the company has made optimal use of its 103,250 direct labor hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity that is for added direct lobortime Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 Required 4 Ferences Required How many direct labor hours are used to manufacture one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Trish Sarah Mike Sewing Kit Direct labor hours per unit Regred 2 > Debbie Complete this question by entering your answers in the tabs below. Drint Required: Required 2 Required terences Required 4 Required How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Debbie Trish Sarah Mike Bewing Kit Variable overhead cont per una Complete this question by entering your answers in the tabs below. onces Required 1 Required 2 Required 3 Required 4 Required 5 What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Debbie Trish Sarah Mike Sewing Kit Contribution Margin por DLH Complete this question by entering your answers in the tabs below. cos Required 1 Required 2 Required 3 RequiredRequired s Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? (Do not round intermediate calculations. Round your final answer to a whole dollar amount.) Highest total contribution margin Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Reagired 5 Assuming that the company has made optimal use of its 103,250 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Highest direct laborate per hour per hour

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