The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year:

Product	Demand Next year (units)	Selling Price per Unit	Direct Materials	Direct Labor
Debbie	57,000	$ 23.00	$ 5.00	$ 1.50
Trish	49,000	$ 7.00	$ 1.80	$ 0.60
Sarah	42,000	$ 41.00	$ 7.49	$ 3.00
Mike	45,500	$ 10.00	$ 2.70	$ 2.00
Sewing kit	332,000	$ 8.70	$ 3.90	$ 0.35

The following additional information is available:

1. The companys plant has a capacity of 80,520 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products.
2. Next years direct labor pay rate will be $5 per hour.
3. Fixed manufacturing costs total $590,000 per year. Variable overhead costs are $2 per direct labor-hour.
4. All of the companys nonmanufacturing costs are fixed.
5. The companys 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 companys five products?
2. How much variable overhead cost is incurred to manufacture one unit of each of the companys five products?
3. What is the contribution margin per direct labor-hour for each of the companys five products?
4. Assuming direct labor-hours is the companys constraining resource, what is the highest total contribution margin the company can earn next year if it makes optimal use of its constrained resource?
5. Assuming next year the company makes optimal use of its 80,520 direct labor-hours, what is the highest direct labor rate per hour Walton Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)?