The Waiton Toy Compony manufactures a line of dols 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 dato: The following additional information is available: a. The company's plant has a capacity of 76,800 direct labor-hours per year on a single-shin basis. The company's present employees and equipment can produce all five products. b. The direct labor fate of $7 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $610,000 per year. Variable overhead costs are $4 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The companys finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor hours are used to manufocture one unit of each of the company's five products? 2. How much varlable ovemead cost is incurred to manufactute 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 the Required: 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 cirect 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 the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 76.800 direct labor-hours, whot is the highest direct labor rate per hour that Waiton Toy Company would be willing to pay for additional copacity (that is, for added direct labor time)? Complete this question by entering your answers in the tabs below. What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round intermediate calculations. Pound your answers to 2 decimal places.) 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 the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 76,800 direct labor-hours, what is the highest direct labor rate per hour that Wolton 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 that the company can earn if it makes optimal use of its constrained resource? (Do not round intermediate calculations, kound vour final answer to il 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 margin that the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 76,800 direct labor-hours, what is the highest direct labor rate per hour 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 the company has made optimal use of its 76,800 direct labor-hours, what is the highest direct labor rate per hour that Waiton Toy Company would be willing to pay for additional capacty (that is, for added direct fabor time)? (Do not round inbermediate calculations. Round your answers to 2 decimal places.)
