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Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available Demand (units) Price per unit Variable costs Softy FriendlyGoody 63,000 Besty 72,000 41.00 27.00 Lovey 128,000 37.00 74,800 $ 51.00 $ 44.00 90,000 Direct materials Direct labour 6.90 7.60 6.10 4.75 9.90 13.30 7.90 9.50 5.70 3.80 The following additional information is available a. The company's plant has a capacity of 130,000 direct labour-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products b. The direct labour rate is $19 per hour, this rate is expected to remain unchanged during the coming year. c. Fixed manufacturing costs amount to $880,000 per year. Variable overhead costs are $9 per direct labour-hour d. All of the company's sales and administrative costs are fixed Required 1. How many total direct labour-hours will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.) DLH Per Unit 0 Friendly Goody es Lovey 2.Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation. (Round "Per Unit" to 2 decimal places.) Direct Labour-Hour Estimated Product Total Hours Per Unit Sales (Units) Softy Friendly Goody Besty Lovey Total hours required hours hours hours hours hours 3. What is the highest price, in terms of a rate per hour, that SCF would be willing to pay for additional capacity (ie., for added direct labour time)? Highest price per hour . Assume again that the company does not want to reduce sales of any product. Identify ways the company could obtain the additional output. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Adding another shit Contracting out some work to outside suppliers Employing additional labour force Expanding the workforce Eliminating wasted labour time in the production process Utilizing the unutilized capacity Working overtime Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available Demand (units) Price per unit Variable costs Softy FriendlyGoody 63,000 Besty 72,000 41.00 27.00 Lovey 128,000 37.00 74,800 $ 51.00 $ 44.00 90,000 Direct materials Direct labour 6.90 7.60 6.10 4.75 9.90 13.30 7.90 9.50 5.70 3.80 The following additional information is available a. The company's plant has a capacity of 130,000 direct labour-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products b. The direct labour rate is $19 per hour, this rate is expected to remain unchanged during the coming year. c. Fixed manufacturing costs amount to $880,000 per year. Variable overhead costs are $9 per direct labour-hour d. All of the company's sales and administrative costs are fixed Required 1. How many total direct labour-hours will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.) DLH Per Unit 0 Friendly Goody es Lovey 2.Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation. (Round "Per Unit" to 2 decimal places.) Direct Labour-Hour Estimated Product Total Hours Per Unit Sales (Units) Softy Friendly Goody Besty Lovey Total hours required hours hours hours hours hours 3. What is the highest price, in terms of a rate per hour, that SCF would be willing to pay for additional capacity (ie., for added direct labour time)? Highest price per hour . Assume again that the company does not want to reduce sales of any product. Identify ways the company could obtain the additional output. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Adding another shit Contracting out some work to outside suppliers Employing additional labour force Expanding the workforce Eliminating wasted labour time in the production process Utilizing the unutilized capacity Working overtime

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