Home / Questions / The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand fo...
The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls 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:
| Product | Demand Next year (units) |
Selling Price per Unit |
Direct Materials |
Direct Labor |
| Debbie | 70,000 | $38.00 | $4.70 | $3.50 |
| Trish | 62,000 | $ 4.60 | $1.60 | $1.00 |
| Sarah | 55,000 | $31.00 | $9.44 | $6.50 |
| Mike | 48,000 | $14.00 | $4.00 | $4.50 |
| Sewing kit | 345,000 | $ 10.00 | $5.20 | $0.50 |
|
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The following additional information is available:
Required:
1. Determine the contribution margin per direct labor-hour expended on each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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2. Calculate the the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year. (Do not round intermediate calculations.)
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3. Based on response to Requirement 1 & 2, how much of 94,500 direct labor hours of capacity will be allocated to Walton Toy Company’s various products?
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