Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

**Please help with the last question, #5. The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the

**Please help with the last question, #5.

image text in transcribedimage text in transcribed

The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls 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 Demand Selling Next year Price Direct Direct Product (units) per Unit Materials Labor Debbie 57,000 $23.00 $5.00 $1.50 49,000 7.00 $1.80 $0.60 Trish Sarah 42,000 $41.00 $7.49 $3.00 45,500 $10.00 $2.70 $2.00 Mike 332,000 8.70 $3.90 $0.35 Sewing kit The following additional information is available a. The companys plant has a capacity of 80,520 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 $5 per hour is expected to remain unchanged during the coming year. c. Fixed costs total $590,000 per year. Variable overhead costs are $2 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: Determine the contribution margin per direct labor-hour expended on each product. intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct Contribution Product Margin per DLH Debbie 53.00 Trish 36.33 Sarah 48.85 Mike 11.25 61.57 Sewing kit 2. Calculate the the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year. (Do not round intermediate calculations.) Answer is complete and correct Product Total Hours 17,100 Debbie Trish 5,880 Sarah 25,200 18,200 Mike Sewing Kit 23,240 89,620 Total hours required

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions