Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 Thi Sarah Demand Nextelling year Price Direct Direct Cinta per unit Materiale Lab 62,000 $20.50 $ 3.60 54,000 $ 7.00 32.30 91.32 47.000 53.00 00.24 7.20 56.000 $15.00 #4.80 337,000 3.20 14.40 0.72 $5.50 Sewing kit The following additional information is available: a. The company's plant has a capacity of 84,160 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 $12 per hour is expected to remain unchanged during the coming year Flved manufacturing costs total $640.000 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 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 5. Assuming that the company has made optimal use of its 84,160 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 Mike Sewing Kit Direct labor hours per unit Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What research background do you have?

Answered: 1 week ago