2.00 points The Walton Toy Company manufactures a line of dolls and a doll dress

Question

2.00 points The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is production mix for the coming year. The company has provided the following data: nt requests assistance from you in determining an economical sales and DemandSelling Next year Direct Direct Product (units) per Unit Materials Labor Debbie Trish Sarah Mike Sewing kit $21.00 55,000 7.50 000 $36.50 48,000 $16.00 $4.20 $2.40 $1.44 $8.39 $7.80 $5.60 48, S4 50 $0,84 338,000 The following additional information is available a. The company's plant has a capacity of 94,310 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 c. Fixed costs total $650,000 per year. Variable overhead costs are $4 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. Determine the contribution margin per direct labor-hour expended on each product. (Do not round ntermediate calculations. Round your answers to 2 decimal places.) Margin per DLH Product Debbie Trish Sarah Mike Sewing kit O Type here to search

Explanation / Answer

1) Debbie Trish Sarah Mike Sewing kit direct labor cost per unit 4.2 1.44 7.8 5.4 0.84 direct labor rate per hour 12 12 12 12 12 direct labor hrs per unit 0.35 0.12 0.65 0.45 0.07 variable overhead cost incurred Debbie Trish Sarah Mike Sewing kit variable overhead cost per hour 4 4 4 4 4 direct labor hours per unit 0.35 0.12 0.65 0.45 0.07 variabe overhead cost incurred 1.4 0.48 2.6 1.8 0.28 contribution margin per DLH Selling price 21 7.5 36.5 16 9.3 less:Variable costs direct materials 5.6 2.4 8.39 3.3 4.5 direct labor 4.2 1.44 7.8 5.4 0.84 variable overhead 1.4 0.48 2.6 1.8 0.28 total variable costs 11.2 4.32 18.79 10.5 5.62 contribution margin per unit 9.8 3.18 17.71 5.5 3.68 direct labor hours per unit 0.35 0.12 0.65 0.45 0.07 contribution margin per hours 28.00 26.50 27.25 12.22 52.57 answer Ranking 2 4 3 5 1 2) DLH per estimated total product unit sale units hours Debbie 0.35 63,000 22050 trish 0.12 55,000 6600 Sarah 0.65 48,000 31200 mike 0.45 48,000 21600 sewing kit 0.07 338,000 23660 total hours required 105110 3) Allocated total product hours Debbie 22,050 trish 6,600 Sarah 31,200 mike balancing figure 10,800 sewing kit 23,660 total hours required 94,310 4) hightest total contribution margin units produ contribution total product per unit contribution Debbie 63,000 9.8 617400 trish 55,000 3.18 174900 Sarah 48,000 17.71 850080 mike 24,000 5.5 132000 sewing kit 338,000 3.68 1243840 total contribution margin 3018220 5) highest price will be   $12 direct labor rate +$12.22 contribution margin per hours 24.22

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