Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Brandilyn Toy Company manufactures a ine of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Brandilyn Toy Company manufactures a ine of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from the best 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 abor Marcy 26,000 $35.00 $3.50 $4.80 Tina 42.000 $24.00 $2.30 $3.00 Can 40.000 $22.00 $4.50 $8.40 Lenny 46,000 $18.00 $3.10 $6.00 Sewing kit 450.000 $14.00 $1.50 $2.40 The following additional information is available: a. The company's plant has a capacity of 150.000 direct labor-hours per year on a single-shift basis, The b. company's present employees and equipment can produce all products, The direct labor rate of $12.00 per hour is expected to remain unchanged during the coming year c. Fixed costs total $356,000 per year. Variable overhead costs are $4 00 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. Determine the contribution margin per direct labor-hour expended on each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Marcy Tina Cari Lenny Direct labor cost per unit Sewing Kit

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

IT Audit In China

Authors: LIU Ruzhuo

1st Edition

981428145X, 978-9814281454

More Books

Students also viewed these Accounting questions

Question

1. What is the social mission of Seventh Generation?

Answered: 1 week ago

Question

2. What are the components of IT infrastructure?

Answered: 1 week ago