Question
Barcelona, Inc produces two products, Hoodies and T-shirt. Barcelona expects to sell 10,000 units of T-shirts and to have an inventory of 2,000 units of
Barcelona, Inc produces two products, Hoodies and T-shirt. Barcelona expects to sell 10,000 units of T-shirts and to have an inventory of 2,000 units of T-shirts on hand at the end of the period. Currently, Barcelona has 800 units of T-shirt on hand at the beginning of the period. T-shirt requires two labor operations, stitching and ironing. Each unit of T-shirt requires one hour of stitching and two hours of ironing. The direct labor rate for stitching is $22 per stitching labor hour and the direct labor rate for ironing is $20 per ironing labor hour. The expected cost of direct labor for T-shirt is:
Group of answer choices
$545,600
$694,400
$563,200
$716,800
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