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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 long-sleeve T-shirt?
▸ $11.73
▸ $12.23
▸ $11.23
▸ $11.15
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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$12.23
($400 ÷ 100) + (2 ÷ 32 × $16) + ($8 ÷ 100) + ($19.20 × 0.25) + ($9.40 × 0.25) =
$4.00 + $1.00 + $0.08 + $4.80 + $2.35 = $12.23
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You make an excellent tutor!
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I appreciate what you did here, answered it right
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