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 addisonal information is avallable: a. The company's plant has a capacity of 153,100 direct labor-hours per year on a single-shit bass. The componys present employees and equipment can produce all five products. b. The direct labor rate of $30 per hour ic expected to remain unchanged during the coming yeat c. Fixed manufocturing costs totai $525,000 per year. Vatioble overhead costs are $2 per drect labor-hour. a. All of the companys nonmanufacturing costs are theed - The cormpany's finithed goods inventory is negigibie and can be ignored. Hequired: 1. How many direct labor hours are used to manufacture one unit of each of the company's five products? 2. How much vartable 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 tive 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 153.100 direct labor-hours, what is the highest direct labor rate per hour that Waiton Toy Company would be witling to pay for additional capacity (that is, for added direct labor umel? 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 five products? (Dp not round intermediate calculationa. Round your answers to 2 decimal placesi) 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 proctucts? 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 153,100 direct labor-hours, What is the highest direct labor rate per hour th. Waiton 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 much variable overheod cost is incurred to manufacture one unit of eath of the company f five products? (Do not round intermedute calculations. Round your unswers to 2 decimal places.) Required: 1. How mamy direct labor hours are used to manufacture one unit of each of the company's five products? 2. How much vartable 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 con earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 153,100 direct iabor-hours, what is the highest ditect labor rate per hour th: Walton Toy Company would be wiling 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 intemrediate calculations. fhound your answers to 2 decimal places.) Required: 1. How many direct labor hours are used to manufacture one unit of each of the company's five products? 2. How much vartable 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 rotal contribution margin that the company can earn if makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 153,100 direct labor-hours, what is the highest direct labor rate per hour that Waton Toy Company would be wiling to pay for additional capacity (that is, for added direct ibbor time)? 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 eatn if it makes optimal use of its constrained resource? (Oo not round intermediate calcilations, Round yout finid 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 153:100 direct labor-hours, what is the highest direct laborrate per hour that Waiton 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. Assuming that the company has made optimal use of its 153,100 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capactv (that is, for added direct labor time)? (Do not round intertriediate calculations. Round your answers to 2 decmal places.)
