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management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Demand

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management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Demand Selling Price Next Direct Direct year (units) per Unit 66,000 58,000 51,000 37,000 341,000 Product Materials $4.30 Labor $ 3.50 0.84 5.60 $ 4.20 $ 0.49 $37.00 Debbie $ 5.00 Trish $1.20 Sarah Mike $35.50 $15.00 $ 9.60 $8.84 $3.60 Sewing kit $4.80 The following additional information is available: single-shift basis. The company's present employees a. The company's plant has a capacity of 115,730 direct labor-hours per year on a and equipment can produce all five products. 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. Variable overhead costs are $3 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 variable overhead cost is incurred to manufacture oneunit 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 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 3 Required S Required 1 Required 4 Required 2 The following additional information is available: a. The company's plant has a capacity of 115,730 direct labor-hours per year on a single-shift basis. The company's present e and equipment can produce all five products. 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. Variable overhead costs are $3 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 gach 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 tha company can earn if 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 p 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 Required 2 Required 3 Required 4 Required 5 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.) Debbie Trish Sarah Mike Sewing Kit Direct labor hours per unit C Required 1 Required 2 > and equipment can produce all five products. 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. Variable overhead costs are $3 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 variable overhead cost is incurred to manufacture one unit of each of the company's five produc 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 contributi company can earn if 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 dire 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 3 Required 4 Required 5 Required 2 Required 1 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (D intermediate calculations. Round your answers to 2 decimal places.) Sewing Kit Sarah Mike Debbie Trish Variable overhead cost per unit Required 3 Required 1 a. The company's plant has a capacity of 115,730 direct labor-hours per year on a single-shift basis. The company's and equipment can produce all five products. 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. Variable overhead costs are $3 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 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 r company can earn if 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 la 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 4 Required 5 Required 1 Required 2 Required 3 What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round interme calculations. Round your answers to 2 decimal places.) Mike Sewing Kit Debble Trish Sarah Contribution Margin per DLH Required 2 Required 4 a. The company's plant has a capacity of 115,730 direct labor-hours per year on a single-shift basis. The company's prese and equipment can produce all five products. 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. Variable overhead costs are $3 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 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 company can earn if 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 rat 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 4 Required 1 Required 3 Required 5 Required 2 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 Required 5 Required 3 www mu The following additional information is available: a. The company's plant has a capacity of 115,730 direct labor-hours per year on a single-shift basis. The company's present emp and equipment can produce all five products. 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. Variable overhead costs are $3 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 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 th company can earn if 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 Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? used to manufacture one unit of each of the company's five products? Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2 Required 3 Required 5 Assuming that the company has made optimal use of its 115,730 di rect labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willling 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 labor rate per hour per hour Required 4 Required 5

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