Firefox File Edit View History Bookmarks Tools Window Help · csuF Portal , Home
ID: 2584530 • Letter: F
Question
Firefox File Edit View History Bookmarks Tools Window Help · csuF Portal , Home xl PeopeSoft session expired x TITANlum | Fall 2017 ACCT 2018-11X c × 1.00 points The Montrose Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining the best sales and production mix for the coming year. The company has provided the following data: Seling piret Labor Next year Price Direct Direct Marcy Tina Cari Lenny Sewing kit 25,400 $43.00 $4.30 $6.10 41.400 $36.00 $3.50 $5.00 39,400 $33.00 $6.70 $12.90 45,400 $30.00 $4.80 $10.30 454,000 $29.00 $3.00 $4.60 The following additional information is available: a. The company's plant has a capacity of 155,600 direct labor-hours per year on a single-shilt basis. The company's present and equipment can produce all five products and equipment can produce all five b. The direct labor rate of $20 per hour is expected to remain unchanged during the coming year c. Fixed costs total $350,000 per year. Variable overhead costs are $3 por direct labor-hour d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored Required: 1. Determine the contribution margin per direct labor-hour expended on each product. (Round your final answers to 2 decimal places. Margin per DLH Product Marcy Tina Car Lenny Sewing Kat 2. Calculate the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year. (Do not round intermediate calculations.)Explanation / Answer
Product
Direct material ($)
Direct labor ($)
Direct labor hour / unit *
Variable ($) overhead **
Total variable cost
Marcy
4.3
6.1
18.3 minutes
.915
8.29
Tiny
3.5
5
15 minutes
.75
16.65
Cari
6.7
12.9
38.7 minutes
1.935
21.535
Lenny
4.8
10.3
31 minutes
1.55
9.25
Sewing kit
3
4.6
13.8 minutes
.69
11.315
* Direct labor hour = actual labor cost/labor hour rate*60
** variable overhead = direct labor hour*variable overhead rate
Product
Selling price
Total variable cost
contribution
Direct labor hour / unit
Contribution margin / direct labor hour
Marcy
43
11.315
31.685
18.3 minutes
104
Tiny
36
9.25
26.75
15 minutes
107
Cari
33
21.535
11.465
38.7 minutes
17.78
Lenny
30
16.65
13.35
31 minutes
25.83
Sewing kit
29
8.29
20.71
13.8 minutes
90
2)
Product
Annual demand
Direct labor hour / unit
Total direct labor hour requirement
Marcy
25400
18.3 minutes
7747
Tiny
41400
15 minutes
10350
Cari
39400
38.7 minutes
25413
Lenny
45400
31 minutes
23457
Sewing kit
454000
13.8 minutes
104420
Total labor hour required
171387
4)
Product
Direct material ($)
Direct labor ($)
Direct labor hour / unit *
Variable ($) overhead **
Total variable cost
Marcy
4.3
6.1
18.3 minutes
.915
8.29
Tiny
3.5
5
15 minutes
.75
16.65
Cari
6.7
12.9
38.7 minutes
1.935
21.535
Lenny
4.8
10.3
31 minutes
1.55
9.25
Sewing kit
3
4.6
13.8 minutes
.69
11.315
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.