The Waton Toy Company manytectures of live of dols and a sewing kit Deinund far the company's products is the compo yeac. The cempary hes provided the following dats: The followive addegne information s avalable. 2. The company's plant has a capocity of 127,580 direct laber-heur per year on a single shat bers. The compery's present employees and equpenent can produce all five products. b. The divect labor rato of $7 per hour is expectitd to reman unchanped ouring the coering yeat. d. Al of the company/s nonmanutacturing costs ace fined. Requlred: 1. How many direct labor houn are ised to mensecture one unt of each of the companys five producta? 2 How much variable overhead cost is incurned to manufacture oce unit of each of the compary's five products? 3. What is the contribution megin per direct lubor hovi for ebch of the company's five preducts? 4. Assuming thet direct labor-hours is the compary's constroining resource, nhat is the highest tseal controution margin 5. Assuming that the company has made opemal use of is 127580 direet labser-hours, what is the highest dinect labor time)? Complete this question by entering your answers in the tabs below. How much varlable overhesd 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 ploces.) 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 on economical sales and production mix for the coming yeac. The company has provided the following data The following odditional information is available: a. The company's plant has a capacity of 127,580 direct labor-hours per year on a single-shif basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $7 per hour is expected to remain unchanged during the coming year c. Fxed manufacturing costs total $565.000 per year. Variable overhead costs are $5 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 manulacture one unit of each of the compary'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 cam if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 127,580 direct labor-hours, what is the highest direct labor rate per hour that Wolton Toy Company would bo willing to poy for additional capocity (that is, for added direct labor timel? Complete this question by entering your answers in the tabs below. What is the contribution main per direct labor-hour for each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) The Wobon Toy Company manufactures a line of dols and a sewing kt. Demand for the compsty/s products is incressing. and maneoememt requests assivtance from you in delermining an economical sales avd production mix for the coming yer. The compary has previded the followisg date: The folowing addions information b avalinole: present employees end equipmert cen produce all fve preducts. b. The direct iebor rate of $7 per hour is expected to remain unchavged durng the coming yeat d. Ail of the comparyin nonmantactuting costs are fived. e. The compary/ finished goods inventary is negligile and can be lgnered Required: 1 How many direct labor houns are used to manufacture one unlt of each of the companys fve products? 2. How much veriable owechead cost is incured to manufacture one unh of eact of the company's five products? that the compary cas eam if a makes optinal use of its constrained resource? 5 Astuming that Ee company has made aptimal use of its 127500 drext labot hours, what is the highest drect labor rate per heur that Whlon foy Compery would be willing to pery for additional capacily that is, for added direct labor timel? Complete this question by entering your answers in the tabs below. Assuming that direct labor-hours is the company constreining resource, what is the highest total contribution margin that the company can earn if it makes optimat ute of its constrained resource? (Do not round intermediate calculotions. Round your final answer to a whole doliar amount.) Cereplete this aventibe fry entering your anewers in the labs belore
