The Waiton 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: The foliowing additional information is avallable: a. The company's plant has a capacity of 120,140 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 $580,000 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 varlable 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 thot direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the 1. How many direct labor hours are used to manufacture one unit of each of the company's flve 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 ma company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 120,140 direct labor-hours, what is the highest direct labo 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 total contribution margin th the company can earn if it makes optimal use of its constrained resource? (Do not round intermediate calculations. Round your final answer to a whole dollar amount.) 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 company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 120,140 direct labor-hours, what is the highest direct 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 the company has made optimal use of its 120,140 direct labor-hours, what is the highest direct labor hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? (D round intermediate calculations. Round your answers to 2 decimal places.)
