Question: please help me with these questions Problem 13-25 (Algo) Volume Trade-Off Decisions [LO13-5, LO13-6] The Walton Toy Company manufactures a line of dolls and a

please help me with these questions

please help me with these questions Problem 13-25please help me with these questions Problem 13-25please help me with these questions Problem 13-25please help me with these questions Problem 13-25please help me with these questions Problem 13-25
Problem 13-25 (Algo) Volume Trade-Off Decisions [LO13-5, LO13-6] 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: Demand Next Selling Price Direct Product year (units) per Unit Materials Direct Labor Debbie 791969 $ 38.00 $ 4.79 $ 3.50 Tr'ish BZJGGB $ 4.69 $ 1.69 $ 1.99 Sarah 551069 $ 31.99 $ 9.44 $ 6.59 Mike 481069 $ 14.99 $ 4.99 $ 4.59 Sewing kit 345J069 $ 19.99 $ 5 29 $ 9.59 The following additional information is available: a. The company's plant has a capacity of 94,500 direct laborhours per year on a singleshift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $10 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $585,000 per year. Variable overhead costs are $3 per direct laborhour. d. All of the company's nonmanufacturlng 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 ofthe 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 laborhour for each of the company's flve products? 4. Assuming that direct laborhours 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 oflts 94,500 direct laborhours, 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 2 Required 3 Required 4 Required 5 Hon.I much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Variable overhead cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that direct laborhours is the oompany's constraining resource, what is the highest total contribution margin that the compa ny can earn if it makes optimal use of its constrained resource? (Do not round intermediate calculations. Round your nal answer to a whole dollar amount.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What is the contribution margin per direct labor-hour for 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 Contribution Margin per DLHComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that the company has made optimal use of its 94,500 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)? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Highest direct labor rate per hour per hour

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!