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 Demand

Next year

$($units$)$ Selling

Price

per Unit Direct

Materials Direct

Labor

Debbie $68,000$ $ $31\mathrm{.}46$ $ $11\mathrm{.}50$ $ $13\mathrm{.}60$

Trish $60,000$ $ $18\mathrm{.}30$ $ $4\mathrm{.}70$ $ $8\mathrm{.}50$

Sarah $53,000$ $ $41\mathrm{.}84$ $ $6\mathrm{.}00$ $ $23\mathrm{.}80$

Mike $47,600$ $ $28\mathrm{.}40$ $ $6\mathrm{.}50$ $ $17\mathrm{.}00$

Sewing kit $343,000$ $ $20\mathrm{.}40$ $ $6\mathrm{.}80$ $ $6\mathrm{.}80$

The following additional information is available:

The company$$s plant has a capacity of $159,800$ direct labor$-$hours per year on a single$-$shift basis. The company$$s present employees and equipment can produce all five products.

The direct labor rate of $$34$ per hour is expected to remain unchanged during the coming year.

Fixed manufacturing costs total $$565,000$ per year. Variable overhead costs are $$2$ per direct labor$-$hour.

All of the company$$s nonmanufacturing costs are fixed.

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 $159,800$ 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$)?$