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Problem 9.6 Utilizing a Constrained Resource (LO2 - CC7, 8) - EDITED Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is

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Problem 9.6 Utilizing a Constrained Resource (LO2 - CC7, 8) - EDITED Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing. and management wants you to identify an economical sales and production mix for the coming yeat. The following information is available: The following additional information is available: a. The company's plant has a capacity of 120,000 direct labout hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labour rote is $16 per hour, this rate is expected to remain unchanged duing the coming yeat c. Fixed manufacturing costs amount to $790,000 pet year. Variable ovethead cosis are $5 per direct habour-hout. d. All of the company's sales and administrative costs are fixed. Required: 1. How many direct labour hours per unit willbe required to produce the unis estmated to be sold during the corning year? Show you computations. (Round your answers to 2 decimal ploces.) 3. Assume again that the company does not want to reduce sales of any product. Identify ways the company could obtain the additional output. (You may select more than one answer. Single click the box with the question mark to produce a check mork for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Adding another shitt Contracting out some work to outside suppliers 2 Employing additional labour force Expanding the workforce Eliminating wasted labour time in the pdraction process Utilzing the unutilzed capocity Working overtime Required: 1. How many direct labour hours per unit will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your onswers to 2 decimal ploces.) 2. Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation. (Round "Per Unit" to 2 decimal places.)

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