The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit.
ID: 2592070 • Letter: T
Question
The Walton 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 an economical sales and production mix for the coming year. The company has provided the following data:
The company’s plant has a capacity of 118,450 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five products.
The Walton 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 an economical sales and production mix for the coming year. The company has provided the following data:
2. Calculate the 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.) Product Total Hours Debbie Trish Sarah Mike Sewing Kit Total hours requiredExplanation / Answer
(2) Total Direct Labour hours will required to produce for estimated units sold Units Direct labour Cost per unit labour cost per hour Direct labour hours per unit Total Hours required Debbie 51000 $2.70 $6 0.45 22950 Trish 43000 $1.20 $6 0.2 8600 Sarah 36000 $4.50 $6 0.75 27000 Mike 40000 $3.30 $6 0.55 22000 Sewing Kit 326000 $0.90 $6 0.15 48900 Total Hours required 129450 Sale price per unit (1) Direct labour Cost per unit (2) Direct materials(3) Contribution (4) = (1- 2- 3) labour hours per unit (5) Contribution per hour (4/5) Ranking Total hours required Allocation 118,450 based on ranking Debbie 15.5 2.7 4.4 8.4 0.45 18.66666667 II 22950 22950 Trish 6 1.2 1.2 3.6 0.2 18 IV 8600 8600 Sarah 25 4.5 6.59 13.91 0.75 18.54666667 III 27000 27000 Mike 11 3.3 2.1 5.6 0.55 10.18181818 V 22000 11000 balance amount Sewing Kit 8.1 0.9 3.3 3.9 0.15 26 I 48900 48900 Total Hours required 129450 118450 (5) What is the highest Price in terms of reate per hours , that walton willing to pay for an additional capacity Highest Price is $10.18 Per hour The only product not produced to reach the demand is Product "Mike" , So what ever the aditional capacity aquired will be used to manufacture that product . Maximum rate can be paid for Direct labour hour is the Contribution obtained from the product of "MIke" Per Direct labour hour. So maximum amont can be paid per direct labour hour is $10.18
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