Check my work mode : This shows what is correct or Incorrect for the work you have completed so far It does not 10 Problem 11-25 Volume Trade-Off Decisions [LO11-5, LO11-6 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 mlx for the coming year. The company has provided the following data: Sext Selling year PriceDireet S5.000 7.50 48,000 $36-50 48,000 16.0 38.000 9-3 $2-40 1.44 8.39 7.80 3.0 $5.40 4.50-8 Seving kit The following additional information is available a. The company's plant has a capacity of 94,310 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all flive products b. The direct labor rate of $12 per hour is expected to remain unchanged during the coming year c. Flxed manufacturing costs total $650,000 per year Variable overhead costs are $4 per direct labor-hour d. All of the company's nonmanufacturing costs are fxed e. The company's finished goods inventory is negligible and can be ignored 1 How many direct labor hours are used to manufacture one unit of each of the company's five products? 2. How much varlable 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? Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the company can earm if it makes optimal use of its constrained resource? 3 5 9 Check my work mode : This shows what is correct or Incorrect for the work you have completed so far It does not 10 Problem 11-25 Volume Trade-Off Decisions [LO11-5, LO11-6 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 mlx for the coming year. The company has provided the following data: Sext Selling year PriceDireet S5.000 7.50 48,000 $36-50 48,000 16.0 38.000 9-3 $2-40 1.44 8.39 7.80 3.0 $5.40 4.50-8 Seving kit The following additional information is available a. The company's plant has a capacity of 94,310 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all flive products b. The direct labor rate of $12 per hour is expected to remain unchanged during the coming year c. Flxed manufacturing costs total $650,000 per year Variable overhead costs are $4 per direct labor-hour d. All of the company's nonmanufacturing costs are fxed e. The company's finished goods inventory is negligible and can be ignored 1 How many direct labor hours are used to manufacture one unit of each of the company's five products? 2. How much varlable 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? Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the company can earm if it makes optimal use of its constrained resource? 3 5 9