Problem 13-25 (Algo) Volume Trade-Off Decisions (LO13-5, LO13-6) 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 mix for the coming year. The company has provided the following data: Product Debbie Trish Sarah Mike Sewing kit Demand Next Selling year Price Direct (units) per Unit Materials 60,000 $19.50 $5.30 52,000 $ 6.00 $2.10 45,000 $33.00 $7.94 52,000 $13.00 $3.00 335,000 59.00 $4.20 Direct Labor $ 2.80 $ 1.20 $ 5.20 $ 3.60 $ 0.80 The following additional information is available: a. The company's plont has a capacity of 103,250 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 manufacturing costs total $620,000 per year. Variable overhead costs are $5 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 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 103,250 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)? 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 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 103,250 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 lobortime)? 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 plces.) Debbie Trish Sarah Mike Sewing kit Direct labor hours per unit Required 2 > nufacture 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 company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 103,250 direct labor-hours, what is the highest direct la 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 Required I Required 3 Required 4 Required 5 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do not rou Intermediate calculations. Round your answers to 2 decimal places.) Debbie Trish Sarah Sewing Kit Variable overhead cost per unit Mike 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 produ 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 contribut company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 103,250 direct labor-hours, what is the highest dire 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 Required 2 Required 3 Required 4 Required 5 What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round interm calculations. Round your answers to 2 decimal places.) Debbio Trish Sarah Mike Sewing Kit Contribution Margin per DLH Required: 1. How many direct labor hours are used to manufacture one unit of each of the company's five pro 2. How much variable overhead cost is incurred to manufacture one unit of each of the company's 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 tota company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 103,250 direct labor-hours, what is the that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct la Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 4 Required 5 Assuming that direct labor-hours is the company's constraining resource, what is the highest total contri the company can earn If it makes optimal use of its constrained resource? (Do not round intermediate ca your final answer to a whole dollar amount.) Highest total contribution margin O employees and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the c c. Fixed manufacturing costs total $620,000 per year. Variable overhead costs are $ d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. s eBook Required: 1. How many direct labor hours are used to manufacture one unit of each of the compa 2. How much variable overhead cost is incurred to manufacture one unit of each of the 3. What is the contribution margin per direct labor-hour for each of the company's five 4. Assuming that direct labor-hours is the company's constraining resource, what is the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 103,250 direct labor-hours, that Walton Toy Company would be willing to pay for additional capacity (that is, for add Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that the company has made optimal use of its 103,250 direct labor-hours, what hour that Walton Toy Company would be willing to pay for additional capacity (that is, for a round intermediate calculations. Round your answers to 2 decimal places.) Highest direct labor rate per hour per hour