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 additional information is available a. The company's plant has a capacity of 116,330 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 $9 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $535,000 per year. Variable overheod costs are $2 per direct labor-hour. d All of the company's nonmanufacturing costs are fixed e. The company's finished goods inventory is negligble 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 ovemead cost is incurred to monufocture one unit of each of the company's five products? 4. Assuming contribution margin per direct labor-hour for eech of the company's five products? company can earn if it makes optimal use company's constroining resource, what is the highest total contribution margin that the 5. Assuming that the company has made of its constrained resource? Waiton Toy Company would be willing to pay for use of its 116,330 drect fabor-hours, what is the highest direct labor rate per hour that 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 tinit 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 116,330 direct kabor-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. How many direct labor hours are used to manufacture one unit of each of the company's frve products? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
