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: Product Debbie Trish Sarah Mike Sewing kit Demand Next Selling year Price Direct (unita) per Unit Materials 51.000 315.50 $4.40 43,000 55.00 $1.20 36,000 $25.00 36.59 40,000 $11.00 32.10 326.000 3 8.10 03:30 Direct Labor $ 2.70 $ 120 5.4.50 $ 3.30 $0.90 The following additional information is available: ent employees a. The company's plant has a capacity of 118,450 direct labor-hours per year on a single-shift basis. The company's 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. Fixed manufacturing costs total $530,000 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 loventory 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 118,450 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 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 Sewing Kit Direct libcr hours per unit Required 2 > 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 Sarah Mice Sewing Kit Variable overhead cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reqgred 3 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 Trish Sarah Mike Sewing Kit Contribution Margin per DLH Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Requiry 4 Required 5 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.) Highost sotal contribution margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that the company has made optimal use of its 118,450 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 calitations. Round your answers to 2 decimal places. Highestorulaborate per hour per hour
