The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, andmanagement requests assistance from you in determining an economical sales and production mix for the coming year. The companyhas provided the following data:Demand Next year Selling PriceProductDebbieper Unit$28.50$ 6.50Trish(units)56,00048,00041,00032,000331,000SarahMike$ 40.50$ 16.00$8.60Sewing kitThe following additional information is available:DirectMaterials$ 4.90$ 1.70$7.34$ 2.60$ 3.80DirectLabor$4.40$ 1.28$ 6.80$5.20$ 0.88a. The company's plant has a capacity of 120,140 direct labor-hours per year on a single-shift basis. The company's present employeesand equipment can produce all five products.b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year.c. Fixed manufacturing costs total $580,000 per year. Variable overhead costs are $5 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 Required 2 Required 3Required 4 Required 5What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round intermediatecalculations. Round your answers to 2 decimal places.)Contribution Margin per DLHDebbieTrishSarahMikeSewing Kit

The contribution margin is calculated as difference between the sales and variable costs. The net…

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 compar has provided the following data: Demand Next year Selling Price (units) 56,000 per Unit $28.50 48,000 Product Debbie Trish Sarah Mike Sewing kit The following additional information is available: 41,000 32,000 331,000 $ 6.50 $ 40.50 $ 16.00 $8.60 Direct Materials $ 4.90 $ 1.70 $7.34 $2.60 $ 3.80 Direct Labor $4.40 $ 1.28 $6.80 $5.20 $0.88 a. The company's plant has a capacity of 120,140 direct labor-hours per year on a single-shift basis. The company's present employe and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $580,000 per year. Variable overhead costs are $5 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.

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 compar has provided the following data: Demand Next year Selling Price (units) 56,000 per Unit $28.50 48,000 Product Debbie Trish Sarah Mike Sewing kit The following additional information is available: 41,000 32,000 331,000 $ 6.50 $ 40.50 $ 16.00 $8.60 Direct Materials $ 4.90 $ 1.70 $7.34 $2.60 $ 3.80 Direct Labor $4.40 $ 1.28 $6.80 $5.20 $0.88 a. The company's plant has a capacity of 120,140 direct labor-hours per year on a single-shift basis. The company's present employe and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $580,000 per year. Variable overhead costs are $5 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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