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Kandy Harts manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, ...

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Kandy Harts manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, ...

Kandy Harts manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, company logos or other information. Each T-shirt requires 2 ounces of ink, 15 minutes of direct labor (processing, folding, packaging), and a plastic bag for packaging. The following information is available regarding costs:

Short-sleeve T-shirts, 100-pack

$350.00

Long-sleeve T-shirts, 100-pack

400.00

Direct labor, per hour

16.00

Ink, 32-ounce bottle

16.00

Plastic bags, 100-pack

8.00

Kandy applied overhead at a rate of $9.40 per direct labor hour, and fringe benefits for workers are an additional 20% of wages. What is the standard price of producing one short-sleeve T-shirt?

▸ $10.65

▸ $11.73

▸ $12.23

▸ $10.73

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Managerial Accounting

Edition: 4^th

Author: Davis

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