Chapter 10 Help Sava Gheday 6 Problem 13-25 (Algo) Volume Trade-Off Decisions (L013-5, LO13-6) 10 points The Walton Toy Company manufactures a ine of dolls and a sewng kit Demand for the company's products is casing and management requests assistance from you in determining an economical sales and production for the coming. The comeny has provided the following dan th Demand Price per Produce year (tai Debbie 68,000 $31.00 Tea 60.000 15.00 $3,000 $44.50 34.000 $13.00 Sewing it 34.000 5.9. The following additional information is available st Materiais Loe 6.30 10.) $1.10 6.30 14.30 15.00 19.43 Print Hi The company's plant has a capacity of 127.580 direct labor hours per year on a single-shin basis. The company's present employees and equipment can produce alltive products b. The direct laborate of $7 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $565,000 per year Variable overhead costs we 55 per direct labor-nout d. All of the company's nonmanufacturing costs are fixed 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 five 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 if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 127.580 direct labor-hours, what is the highest direct laborate per hour that Walton Toy Company would be willing to pay for additional capacity that is, for added direct labore Prev 6 of 6 Next 10 sed Required: 1. How many direct labor hours are used to manufacture one unit of each of the company's tive products 2. How much variable overhead cost is incurred to manufacture one unit of each of the company's tive 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 mugin that the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 127.5B0 direct lobor-hours, what is the highest direct laborate per hour that Walton Toy Company would be willing to pay for additional capacity that is for added direct anottime? wo Pred References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Hequired 5 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 Sewing Ki Variable overhead cost per unit (Required 1 Required 3 > 6 of 6
