I need help with all parts. Please and Thank You. The Walton Toy Company manufac

Question

I need help with all parts. Please and Thank You.

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 Demand Selling Next vear Price Direct Labor $ 4.05 $ 1.89 $ 6.75 $ 4.95 $ 1.44 Direct (units) per Unit Materials Product Debbie Trish Sarah Mike Sewing kit 72,000 $18.00 64,000 $ 6.50 57,000 30.00 40,000 15.00 347,000 10.20 4.90 $1.80 9.74 4.20 5.40 The following additional information is available a. The company's plant has a capacity of 155,110 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 $9 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $605,000 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 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 155,110 direct labor-hours, what is the highest direct labor rate per hour that Walton 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 Required 1 Required 2Required 3 Required 4 Required 5 How many direct labor hours are used to manufacture one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Debbie Trish Sarah Mike Sewing Kit Direct labor hours per unit Debbie Trish Sarah Mike Sewing Kit Variable overhead per unit Debbie Trish Sarah Mike Sewing Kit Contribution Margin per DLH Highest total contribution margin Highest direct labor rate per hour per hour

Explanation / Answer

1) Debbie Trish Sarah Mike Sewing kit direct labor cost per unit 4.05 1.89 6.75 4.95 1.44 direct labor rate per hour 9 9 9 9 9 direct labor hrs per unit 0.45 0.21 0.75 0.55 0.16 2) variable overhead cost incurred Debbie Trish Sarah Mike Sewing kit variable overhead cost per hour 5 5 5 5 5 direct labor hours per unit 0.45 0.21 0.75 0.55 0.16 variabe overhead cost incurred 2.25 1.05 3.75 2.75 0.8 3) total contribution margin Selling price 18 6.5 30 15 10.2 less:Variable costs direct materials 4.9 1.8 9.74 4.2 5.4 direct labor 4.05 1.89 6.75 4.95 1.44 variable overhead 2.25 1.05 3.75 2.75 0.8 total variable costs 11.2 4.74 20.24 11.9 7.64 contribution margin per unit 6.8 1.76 9.76 3.1 2.56 direct labor hours per unit 0.45 0.21 0.75 0.55 0.16 contribution margin per hours 15.11 8.38 13.01 5.64 16.00 answer demand CM total product per uni contribution Debbie 72,000 6.8 489,600 trish 64,000 1.76 112640 Sarah 57,000 9.76 556320 mike 40,000 3.1 124000 sewing kit 333,000 2.56 852480 total contribution margin 2,135,040 4) DLH per estimated total product unit sale units hours Debbie 0.45 72,000 32400 trish 0.21 64,000 13440 Sarah 0.75 57,000 42750 mike 0.55 40,000 22000 sewing kit 0.16 333,000 53280 total hours required 163870 Allocated units contribut total total produced per unit contribution product hours Debbie 32,400 72,000 6.8 489600 trish 13,440 64,000 1.76 112640 Sarah 42,750 57,000 9.76 556320 mike 13,240 24,073 3.1 74625.45 sewing kit 53,280 333,000 2.56 852480 total hours required 155,110 2085665 answer 5) highest price will be   $9 direct labor rate +$5.64 contribution margin per hours 14.64

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