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 dato: The following additional information is avallable: a. The company's plant has a capacity of 152.800 direct lobor-hours per year on a single-shift bosis. The company's present employees and equipment con produce oll five products. b. The direct labor rate of \\( \\$ 7 \\) per hour is expected to remain unchanged during the coming year. c. Fixed monufocturing costs total \\( \\$ 625,000 \\) per yeor. Voriable overhead costs are \\( \\$ 3 \\) per direct labor-hour. d. All of the company's nonmanufocturing costs ore fixed. e. The compony's finished goods inventory is negligible ond con be ignored: Required: 1. How many direct labor hours ore used to manufocture one unit of each of the compary's five products? 2. How much varioble overheod cost is incurred to manufocture one unit of each of the company's five products? 3. What is the contribution margin per direct labor-hour for each of the compony's five products? 4. Assuming that direct labor-hours is the compony's constraining resource, what is the highest total contribution margin that the compony con eam if it makes optimol use of its constrained resource? 5. Assuming that the company has mode optimal use of its 152,800 direct labor-hours, whot is the highest direct labor rate per hour thot Wolton Toy Compony would be willing to poy for additional capacity (that is, for added direct lobor time)? Complete this question by entering your answers in the tabs below. 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.) The following additional information is available: 0. The company's plant has a capacity of 152.800 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 \\( \\$ 7 \\) per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total \\( \\$ 625,000 \\) 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 con be ignored. Required: 1. How many direct labor hours are used to manufacture one unit of each of the compony's five products? 2. How much variable overheod 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 compony's five products? 4. Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the compony con earn if it makes optimal use of its constroined resource? 5. Assuming that the company has mode optimal use of its 152.800 direct lobor-hours, whot is the highest direct labor rate per ho that Walton Toy Company would be willing to pay for additional copacity (that is, for odded direct labor time)? 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.) 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 intern calculations. Round your answers to 2 decimal places.) 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 o whole dollar amount.) Complete this question by entering your answers in the tabs below. Assuming that the company has made optimal use of its 152,800 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)? (Do not round intermediate calculations, Round your answers to 2 decimal places.)
