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 avallable: a. The company's plant has a capacity of 114,750 direct labor-hours per year on a single-shift basis, The company's present employees. and equipment can produce al 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 $540,000 per year. Variable overthead costs are $4 per direct labor-hour. d. All of the companys nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: L. How many drect labor hours are used to manufacture one unit of each of the companys 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 mergin per difect labor-hour for each of the company's five products? 4. Assuming that direct labon hours is the compsny's constralning resource. What is the highest total contribution margin that the company con earn if it mokes optinal use of its constrained resource? 5. Assuming that the compary has made optimat use of its 114,750 direct labor-hours, what is the highest direct labor rate per hour that Waiton Toy Company would be wiling to pay for additional copocity fthat is, for added 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? 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 114,750 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. 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.) 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.) 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 114,750 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. Aspuming that the company has made optimal use of its 114,750 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 fabor time)? (Do not round intermedate calculations, Round your answers to 2 decimal places.)
