Question
A 3-person design team spent 15 days designing the jeans. These jeans can be produced at a rate of 80 pairs per hour with 2
A 3-person design team spent 15 days designing the jeans. These jeans can be produced at a rate of 80 pairs per hour with 2 operators. A truck can ship a maximum of 75,000 pairs of jeans. Your marketing team has secured a huge one-time endorsement from Harry Styles for these new jeans. All associated costs are summarized in the table below. Assume that the plant produces these jeans operates 365 days a year for 10 hours a day. If Levi's plans to produce 3,000,000 pairs of flare jeans, what is the standard cost that we can associate with each pair?
Reason for Cost Cost Unit 4.00 Raw Materials Direct Labor (operators) per person Machine Operations Shipping (Max 75,000 pairs/truck) Design Team Salary per person Harry Styles Endorsement $ per pair $ 24.00 per hour $500 per hour $ 21,000.00 $ 82,000.00 annually $ 700,000.00 one time per truckStep by Step Solution
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