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2. Lemon Yellow Company produces children's clothing which require two processes, cutting and sewing, to complete. The company is concerned about one product, a hooded
2. Lemon Yellow Company produces children's clothing which require two processes, cutting and sewing, to complete. The company is concerned about one product, a hooded jacket, which hasn't been selling as well as it had in past years. Information related to the 20,000 jackets produced annually is shown below. Direct materials $26.000 Direct Labor Cutting department (200 DLH $20 per DLH) $4.000 Sewing department (2.000 DLHX S22 per DLH) $14.000 Machine Hours Cutting department 160 MH Sewing department 1.SOOMH Lemon Yellow's total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on direct labor hours in the cutting department and machine hours in the sewing department. Cutting Sewing Department Department Direct labor hours 16,000 DLH 175.000 DLH Machine hours Manufacturing overhead costs 3.200 MHL $480.000 10.000 MH $240.000 Assume this jacket currently sells for $10. How much profit does the company make per jacket
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