Problem 13-25 (Static) Volume Trade-Off Decisions [LO13-5, LO13-6] The Walton Toy Company manufiactures a line of dolls and a sewing kit. Demand for the companys products is increasing and management requests assistance from you in detemining an economical sales and production mix for the coming yeat. The cornpaty has provided the following data: The following additional information is avalioble: a. The cornpany's plant has a cappocity of 130,000 drect labon haurs per yeat on a single-shitt bisis. The comphary's present employeses and equipment can prodoce all tive products. b. The direct labor rate of $16 per thour is expecled to tertain unchanged dunng the coming year c. Fixed manufacturing costs total $520,000 per year. Variable oveitheod costs are $2 per diect labor houe d. Al of the company's nonimanufacturing costs are fixed. e. The company's finished goods inventory is neglig ble and can be ignored: Required: 1. How many dhrect labor hous are used to maniatocture one unit of cach ot ihe company stive products? 2. How much variable ovedread cost is incured to manufacture one init of each of the comparys fien prodicis? 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 company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 130,000 direct labor-hours, what is the highest direct labor rate pe 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. Assuming that direct labor-hours is the company's constraining resource, what is the highest fotal contribution margin that