The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: Product Debbie Trish Sarahi Mike Sewing kit Demand Next year (units) 73,000 65,000 Selling Price per Unit Directi Materials Direct Labor $ 25.00 $ 5.00 $6.00 $ 1.90 $ 3.50 $1.05 58,000 $ 32.50 $ 9.89 37,000 $ 16.00 $ 4.30 $ 5.60 $4.20 348,000 $10.30 $ 5.50 $ 0.70 The following additional information is available: a. The company's plant has a capacity of 138,550 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pay rate will be $7 per hour. c. Fixed manufacturing costs total $615,000 per year. Variable overhead costs are $2 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 direct labor-hours is the company's constraining resource, what is the highest total contribution margin the company can earn next year if it makes optimal use of its constrained resource? 5. Assuming next year the company makes optimal use of its 138,550 direct labor-hours, what is the highest direct labor rate per hour Walton Toy Company should 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. ferences Required 1 Required 2 Required 3 Required 4 Required S How many direct labor-hours are used to manufacture one unit of each of the company's five products? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Direct labor hours per unit Debbie Trish Required Sarah Mike Sewing Kit Required 2 > Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Debbie Variable overhead cost per unit Trish Sarah Mike Sewing Kit DI Print Complete this question by entering your answers in the tabs below. References 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? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Contribution Margin per DLH Debbie Trish Sarah Mike Sewing Kit Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 Assuming direct labor-hours is the company's constraining resource, what is the highest total contribution margin the i company can earn next year if it makes optimal use of its constrained resource? Note: Do not round intermediate calculations. Round your final answer to a whole dollar amount Highest total contribution margin Print 11- Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 Assuming next year the company makes optimal use of its 138,550 direct labor-hours, what is the highest direct labor rate per hour Walton Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)? Note: Do not round intermediate calculations. Round your answers to 2 decimal places Highest direct labor rate per hour The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: Product Debbie Trish Sarahi Mike Sewing kit Demand Next year (units) 73,000 65,000 Selling Price per Unit Directi Materials Direct Labor $ 25.00 $ 5.00 $6.00 $ 1.90 $ 3.50 $1.05 58,000 $ 32.50 $ 9.89 37,000 $ 16.00 $ 4.30 $ 5.60 $4.20 348,000 $10.30 $ 5.50 $ 0.70 The following additional information is available: a. The company's plant has a capacity of 138,550 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pay rate will be $7 per hour. c. Fixed manufacturing costs total $615,000 per year. Variable overhead costs are $2 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 direct labor-hours is the company's constraining resource, what is the highest total contribution margin the company can earn next year if it makes optimal use of its constrained resource? 5. Assuming next year the company makes optimal use of its 138,550 direct labor-hours, what is the highest direct labor rate per hour Walton Toy Company should 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. ferences Required 1 Required 2 Required 3 Required 4 Required S How many direct labor-hours are used to manufacture one unit of each of the company's five products? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Direct labor hours per unit Debbie Trish Required Sarah Mike Sewing Kit Required 2 > Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Debbie Variable overhead cost per unit Trish Sarah Mike Sewing Kit DI Print Complete this question by entering your answers in the tabs below. References 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? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Contribution Margin per DLH Debbie Trish Sarah Mike Sewing Kit Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 Assuming direct labor-hours is the company's constraining resource, what is the highest total contribution margin the i company can earn next year if it makes optimal use of its constrained resource? Note: Do not round intermediate calculations. Round your final answer to a whole dollar amount Highest total contribution margin Print 11- Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Required 5 Assuming next year the company makes optimal use of its 138,550 direct labor-hours, what is the highest direct labor rate per hour Walton Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)? Note: Do not round intermediate calculations. Round your answers to 2 decimal places Highest direct labor rate per hour
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What immediate clinical concerns does this client present to the counselor or therapist? Are there sufficient symptoms presented in the case to make a diagnosis of either stimulant and/or alcohol use...
-
Financial accounting and reporting provide information that is used in decision making regarding the allocation of resources. In Statement of Financial Accounting Concepts No. 1, Objectives of...
-
Check the solution of the autonomous differential equation, making sure that it also matches the initial condition. Check that b(t) = 10e 3t is a solution of the differential equation db/dt = 3b with...
-
Kingston Corporation has total assets of \(\$ 5,200,000\) and has been earning an average of \(\$ 800,000\) before income taxes the past several years. The firm is planning to expand plant facilities...
-
On May 27, Hydro Clothing Inc. reacquired 75,000 shares of its common stock at $8 per share. On August 3, Hydro Clothing sold 54,000 of the reacquired shares at $11 per share. On November 14, Hydro...
-
When evaluating a large portfolio.... A. ...it does not make sense to measure risk by standard deviation B. calculate the standard deviation of the portfolio by taking the simple average of the...
-
A large employer gives each new hire an aptitude test, which is scored from 1 to 20. Let T be a workers score on the test. The firm then pays the new worker a wage of W0.5T + 0.5G where G is the...
-
Managers are under the constraints of limited time and resources, personal bias, and other factors, which make rational decision-making unrealistic. TRUE/FALSE.
-
What is an example of a situation in which the cost of capacity is substantially more than the cost of waiting? What would the waiting line look like in that situation?
-
Mirrors are sometimes placed in busy lobbies, waiting areas, and on elevator doors. Their purpose is often to make the time pass faster for people waiting in front of them. Which psychological...
-
Is there any situation in which the cost of waiting is strictly linear? What would such a situation look like? How does the so-called cost of waiting vary between certain situations, such as waiting...
-
If increasing the volume of production is likewise increasing the average cost per unit produced, the system is suffering from what?
-
The characteristic polynomial of A is given by t 4t3 + 4t2. Find a Jordan form J for A and a matrix Q such that J Q-AQ. ww 0 -3 1 2 -2 1 -1 2 Let A = -1 2 1 4 -2 1 -2 -3
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
Many choices involve _________ of something to do rather than whether to do something.
-
In acting rationally, people respond to _________.
-
Economists emphasize _________ thinking because the focus is on additional, or _________, choices, which involve the effects of _________ or _________ the current situation.
Study smarter with the SolutionInn App