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The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: 70,000 Product Demand Next year
The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: 70,000 Product Demand Next year (units) Debbie Trish Sarah Mike Sewing kit Selling Price per Unit $ 38.00 Direct Materials Direct Labor $ 4.70 $ 3.50 62,000 $ 4.60 $ 1.60 $ 1.00 55,000 $ 31.00 $ 9.44 $ 6.50 48,000 345,000 $ 14.00 $ 4.00 $ 4.50 $ 10.00 $ 5.20 $ 0.50 The following additional information is available: a. The company's plant has a capacity of 94,500 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 $10 per hour. c. Fixed manufacturing costs total $585,000 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?
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