Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Walton Toy Company manufactures a line of dolls and a sewing Kit Demand for the company's products is increasing and management requests assistance from

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Walton 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: Demand Next Selling year Price (unit) per Unit 58,000 $26.00 50,000 $7.50 43,000 341.50 48.000 333,000 $0.00 Direes Materials $5.10 51.90 Prodot Debbie Triah Sarah Mike Sewing kit Direct Labor $ 2.10 $ 0.78 $ 3.90 $ 2.70 $ 0.48 52.00 The following additional information is available: a. The company's plant has a capacity of 92,190 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 $6 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $600,000 per year Variable overhead costs are $3 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 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 92,190 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. Required 1 Required 2 Required 3 Required Required 5 How many direct labor hours are used to manufacture one unit of each of the company's five products? (Do not round Intermediate calculations. Round your answers to 2 decimal places) Debbie Trish Sarah Mike Sewing H Direct labor hours per unit ed Required 2 > wa Tutorials cengage YouTube The Walton Toy Company manufactures a line of dolls and a sewing it. 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: Dead Belling Price rear Prodant Debbie Direct Materiale $5.10 11.90 $7.54 $2.80 84.00 38.000 26.00 50,000 $7.50 43.000 4.50 48,000 $11.00 333.000 0.00 Direct Labor 3 2.10 $ 0.78 3.90 $ 2.70 $ 0.48 Sarah Bike Sewing lat The following additional information is available: a. The company's plant has a capacity of 92,190 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 $6 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $600,000 per year. Variable overhead costs are $3 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 manutecture 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 92,190 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. Required 1 Required 2 Required 3 Required 4 Required 5 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do not round Intermediate calculations. Round your answers to 2 decimal places Debbie Trish Barah Sewing Variable overhead cost per unit The Walton 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: Demand Fouet Debbie Triah Telce Direct tunita) per Unit Materials 58.000 $26.00 15.10 50,000 57.50 51.90 43,000 $41.50 48.000 11.00 $2.00 333,000 8.80 30.00 Direct Labor $ 2.10 $ 0.78 $ 3.90 5 2.70 3 0.40 Nike Beving kit The following additional Information is available: n. The company's plant has a capacity of 92,190 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 $6 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $600,000 per year. Variable overhead costs are $3 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 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 92,190 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 timel? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Require Required 4 Required 5 What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Debbie Thish Sarah Mike Sewing Kit Contribution Margin per DLH

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_2

Step: 3

blur-text-image_3

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

Accounting And Auditing Practices In Africa

Authors: Mariaan Roos, Lesley Stainbank

1st Edition

1928357431, 978-1928357438

More Books

Students also viewed these Accounting questions

Question

What are the characteristics of a good hypothesis?

Answered: 1 week ago