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I am stuck on requirements 4 and 5 The Walton Toy Company manufactures a line of dolls and a sewing kit Demand for the company's
I am stuck on requirements 4 and 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 Product Debbie Trish Sarah Mike Sewing kit Demand Selling Next Price year per Direct Direct (units) Unit Materials Labor 66.889 537.00 54.30 $3.5e 58. eee $5.00 $1.2e $0.84 51,00 $35.50 $8.34 $5.60 37,600 $15.00 $3.60 $ 4.20 341,000 $9.64 $4.80 50.49 The following additional infomation is avable The company's plant has a capacity of 115.730 derect latior hours per year on a single shift basis. The company present employees and equipment can produce all the products The direct labor rate of $7 per hour expected to remain unchanged durvig the coming Fixed manufacturing costs total $545.000 per year Variable overhead costs are $3 per direct labor hour d. All of the company's manufacturing costs are fored The company s hed goods entory is negligble and can be ignored b. The direct labor rate of $7 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $545,000 per year. Vanable overhead costs are 53 per direct labor hour 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 vanable 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 it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 115,730 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 Complete this question by entering your answers in the tabs below. Required 1 Reg e ne Required 4 Required 5 Assuming that direct labor-hours is the company's containing resource what is the highest total contribution the company can eam makes optimal use of its contraried resource? D o rodit e lja your finale to whold n t) that . Rad
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