7 Problem 9-6 Utilizing a Constrained Resource (LO2- CC7, 8) - EDITED Book Print ferences Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available Demand (units) Price per unit Variable costs: Direct materials Lovey Besty 57,600 102,800 $21.00 $ 17.00 Softy 72,000 Friendly Goody 60,400 50,400 $ 27.00 $ 12.00 $43.00 11.75 5.60 3.75 3.50 17.10 9.80 6.00 7.00 9.00 2.80 Direct labour The following additional information is available: a. The company's plant has a capacity of 110,000 direct labour-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labour rate is $14 per hour; this rate is expected to remain unchanged during the coming year. c. Fixed manufacturing costs amount to $700,000 per year. Variable overhead costs are $5 per direct labour-hour d. All of the company's sales and administrative costs are fixed. Required: 1. How many direct labour hours per unit will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.)