The Waiton Toy Company manutactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and has provided the following data: The following additionatinformation is avaitable: a. The company/s plant has a capacity of 76,800 direct labor-hours per yeat on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labot rate of $7 per hour is expected to remain unchanged during the comina vear. c. Foced manufacturing costs total $610,000 per year Varlable overhead costs are $4 per direct labor hour d. All of the company s honmanufacturing costs are fixed. e. The cornpany'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 mieh 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 ive products? 4. Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution matgin that the company can eam if it makes optirnal use of its constrained resource? 5 Accuming that the company has mude coptimaluse of its 76.800 direct labor-hours, what is the highert direct labor tate per hout that Walton Toy Company would be wiling 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 highost total contribution margin that the company can earn if it makes optimal use of its constrained resource? (Co pot round infermodiate calcuiationt. Round Vour finalanwwerito a wholudollariamounti) The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is incteasing, and has provided the followng data: The following additional information is avaltable: a. The companys plant has a capacty of 76,800 direct labor hours per year on a single-shit basis. The company's present employees and equipment can produce all five products. b. The ditect labor rate of $7 per hour is expected to remain unchanged during the coming yeat C. Fived manufacturing costs total $610.000 pes year. Variable overhead costs are $4 per diect labot hour d. All of the company's nonmanufacturing costs are fored. e The company's fintihed goods inventory is negligble and can be ignored. Required: 1 How char y direct labor hours are used to manufacture one unit of each of the comparys five products? 2. How mish vartable overhead cost is incuired to manufacture one unit of each of the companys tive products? 3. What is the contribution margin per direct labor-hour for each of the companys five products? A. Assuming that direct labor hours is the comparys conitraining resource, what is the highest total contibution margin that the company con eacn if it makes optimal use of its constrained resource? 5. Astuming that the corripany has made optimal use of its 76,800 direct labor hours, what is the highent direct labor rate per hour that Waiton Toy Company would be willind to pay for additional capacty (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 76,800 direce lator hiours, what is the Mighent direct labor rate per hoir that Waiton Toy Company would be willing to pay for additional capactey (that is, for added direct tabor time)? (Do not round intermediate calcutationit. Found your answers to 2 decimal placts.) How many direct labor hours are used to manufacture one unit of each of the company's fivedroducts? (Do not round How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do n intermediate calculations, Round vour answers to 2 decimal places.) What is the contribution margin per direct tabor-hour for each of the company's five products? (Do not round int calculations. Pound your ankware to 2 dedimal ploces)
