Please show all calculations. Thank you! ( if it helps,
I already did requirements 1 and 2)
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 Direct Direct
Product Next year (units) Price per Unit Materials Labor
Debbie 58,000 $ 26.00 $ 5.10 $ 2.10
Trish 50,000 $ 7.50 $ 1.90 $ 0.78
Sarah 43,000 $ 41.50 $ 7.64 $ 3.90
Mike 48,000 $ 11.00 $ 2.80 $ 2.70
Sewing kit 333,000 $ 8.80 $ 4.00 $ 0.48
The following additional information is
available:
a. The company’s plant has a capacity of 92,190 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 $6 per hour is expected to remain unchanged during the
coming year. c. Fixed manufacturing costs total $600,000 per year.
Variable overhead costs are $3 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 92,190
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)?
Please show all calculations. Thank you! ( if it helps, I already did requirements 1 and...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 58,000 $ 26.00 $ 5.10 $ 2.10 Trish 50,000 $ 7.50 $ 1.90 $ 0.78 Sarah 43,000 $ 41.50 $ 7.64...
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: Product Debbie Trish Sarah Demand Selling Next year Price (units) per Unit 58,000 $25.00 50,000 $7.50 43,000 $41.50 48,000 5 11.00 333,000 $ 8.30 Direct Materials $5.10 $1.90 $7.64 52. 0 $4.00 Direct Labor $...
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: Product Debbie Trish Sarah Mike Sewing kit Demand Next Selling year Price Direct (units) per Unit Materials 58,000 $26.00 $5.10 50,000 $ 7.50 $1.90 43.000 $41.50 $7.64 48,000 $11.00 $2.80 333,000 $8.80 $4.00 Direct Labor...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 69,000 $ 41.00 $ 4.60 $ 4.00 Trish 61,000 $ 4.50 $ 1.50 $ 1.00 Sarah 54,000 $ 30.50 $ 9.29...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 66,000 $ 37.00 $ 4.30 $ 3.50 Trish 58,000 $ 5.00 $ 1.20 $ 0.84 Sarah 51,000 $ 35.50 $ 8.84...
7 Problem 6-25 (Algo) Volume Trade-Off Decisions (L06-5, L06-6) 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: 8.33 points Skipped eBook Product Debbie Trish Sarah Mike Sewing kit Demand Next Selling year Price Direct (units) per Unit Materials 58,000 $26.00 $5.10 50,000 $...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 66,000 $ 37.00 $ 4.30 $ 3.50 Trish 58,000 $ 5.00 $ 1.20 $ 0.84 Sarah 51,000 $ 35.50 $ 8.84...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 72,000 $ 18.00 $ 4.90 $ 4.05 Trish 64,000 $ 6.50 $ 1.80 $ 1.89 Sarah 57,000 $ 30.00 $ 9.74...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 54,000 $ 23.00 $ 4.70 $ 5.40 Trish 46,000 $ 5.00 $ 1.50 $ 1.80 Sarah 39,000 $ 30.00 $ 7.04...
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: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 63,000 $ 21.00 $ 5.60 $ 4.20 Trish 55,000 $ 7.50 $ 2.40 $ 1.44 Sarah 48,000 $ 36.50 $ 8.39...