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Category > Accounting Posted 17 Aug 2017 My Price 12.00

Walton Toy Company

I need detailed help with steps on how to solve :

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 57,000 $23.00 $5.00    $1.50   
  Trish 49,000 $ 7.00 $1.80    $0.60   
  Sarah 42,000 $41.00 $7.49    $3.00   
  Mike 45,500 $10.00 $2.70    $2.00   
  Sewing kit 332,000 $ 8.70 $3.90    $0.35   
 

  

The following additional information is available:

  

a.

The companyAc€?cs plant has a capacity of 80,520 direct labor-hours per year on a single-shift basis. The companyAc€?cs present employees and equipment can produce all five products.
b. The direct labor rate of $5 per hour is expected to remain unchanged during the coming year.
c. Fixed costs total $590,000 per year. Variable overhead costs are $2 per direct labor-hour.
d. All of the company's nonmanufacturing costs are fixed.
  The companyAc€?cs finished goods inventory is negligible and can be ignored.


Question1) : how much of 80,520 direct labor hours of capacity will be allocated to Walton Toy CompanyAc€?cs various products?

  

I got 9100 hrs for Mike but this is being marked wrong, I got this by starting with the amount of constrained hrs available : 80,520, then subtracting constrained resource for sewing kit (23,240) which I got by multiplying 0.07 x 332,000 and the same for all other products down to Trish which gave me a remaining 9,100 hrs

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 12.00

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