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Pl4-27 The Waiton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and managernent requests
Pl4-27 The Waiton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and managernent requests assistance from you in determining an oconomical sales and production mix for the coming year. The company has provided the following data: a. The company's plant has a capacity of 130,000 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year. c. Fixed costs totat $520,000 per year. Variable overhead costs are 32 per direct labor-hour. d. All of the company's nonmanufaeturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored, Required; 1. Determine the contribution margin per direct labor hour expended on each produet. 2. Prepare a schedule showing the total direct laborhours that will be required to produce the units estimated to be sold during the coming year. 3. How would you allocate the 130,000 direct labor-hours of capacity to Walton Toy Company's various products? Problem 1427-Contribution margin per DLH-Debbie Problem 1427-Contribution margin per DLH-Trish Problem 14-27-contribution margin por btH-sarah Problem 14-27-Contribution margin per DLH- Mile Problem 14-27-Contribution margin per DLH-Sewing kit Total hours required Production and pales of the Mike doll Will be reduced by? dolls Piogse answor ail sub-quastions of thus test
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