The following additional information is available:a. The company’s plant has a capacity of 130,000 direct labor-hours per year on a single-shift basis. The company’s present employees 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 costs total $520,000 per year. Variable overhead costs are $2 per direct labor-hour.d. All of the company’s non-manufacturing costs are fixed.e. The company’s finished goods inventory is negligible and can be ignored. Demand next year units CM Direct Labor Hour selling price direct materials direct laborDebbie 50,000 $13.00 $13.50 $ 4.30 $ 3.20Trish 42,000 $7.60 $5.50 $1.10 $2.00Sarah 35,000 $10.80 $21.00 $6.44 $5.60Mike 40,000 6.00 $10.00 $2.00 $4.00Sewing kit 325,000 $14.00 $8.00 $3.20 $1.60how to make schedule showing the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year.
RECOMMENDED!!The company’s plant has a capacity of 130,000
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