Top Posters
Since Sunday
14
o
6
1
l
1
J
1
a
1
C
1
r
1
1
A
1
1
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
duo21 duo21
wrote...
Go to Answer
Posts: 65
Rep: 0 0
A month ago
Custom Design manufactures baby blankets by turning a client's photograph of a new baby into a design printed on the blanket. This is a popular item, selling for $30, for new parents and grandparents. The following information has been provided by various units within Custom Design's departments. The company purchases fleece blankets in bundles of 100 at a price of $500 per bundle. Custom Design has to pay shipping charges of $10 per bundle. The process of transferring a picture onto a blanket costs $1.50. Each blanket is boxed in a cardboard box that costs $0.25 each. It takes one worker 15 minutes to prepare a blanket and transfer the picture onto the blanket and another worker 5 minutes to check the blanket for flaws in the printing and package the blanket. Workers are paid $15 per hour. Custom Design applies overhead at a rate of 120% of direct labor cost.

Required
Compute the standard cost of producing one blanket.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 7 times
1 Reply
Replies
Answer verified by a subject expert
ryan_navarro5ryan_navarro5
wrote...
#1
Posts: 74
Rep: 0 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Material
Purchase price ($500 ÷ 100$  5.00
Picture transfer1.50
Shipping ($10 ÷ 100)0.10
Packaging0.25
Labor
$15 × [(15 + 5) ÷ 60] hours5.00
Overhead
$5 × 120%  6.00
Total standard cost per shirt$17.85
1

Related Topics

duo21 Author
wrote...

A month ago
This calls for a celebration Person Raising Both Hands in Celebration
jayfo05
wrote...

Yesterday
This site is awesome
gefa
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  113 People Browsing
 317 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 709
  
 847
  
 162