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: The following edditional information is available: a. The company's plant has a capacity of 138,550 direct labor-hours per year on a single-shif basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $7 per hour is expected to remain unchanged during the coming year: c. Fixed manufacturing costs total $615,000 per year. Variable overhead costs are $2 per direct labor-hour. d. All of the company's nonmanufacturing costs are foued. e. The company's finished goods invertory 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 variable overhead cost is incurted 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 constrainicg resource, what is the highest total contribution margin that the company can eam if it makes optimal use of its constrained res surce? 5. Assuming that the company has made optimal use of its 138,550 direct lobor-hours, what is the highest direct labor rate per hour that Walton foy Company would be willing to pay for additional capacity (that is, for added direct labor time)? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. 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.) \& Answer is complete but not entirely correct. 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. Round your answers to 2 decimal places.) (x) Answer is complete but not entirely correct. 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. Round your final answer to a whole dollar amount.) \& Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assuming that the company has made optimal use of its 138,550 direct labor-hours, what is the highest direct labor rate pe hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
