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Based on the data I need help finding the total cost of materials for one shirt? You are tasked with finding a standard cost for
Based on the data I need help finding the total cost of materials for one shirt?
You are tasked with finding a standard cost for a new shirt for Nike. Nike plans to produce 1,000,000 of these shirts. It takes 3.5 sq ft of fabric, 2 yds of thread, 2 sq in of labeling, and one logo to to produce one shirt. There was also a design team of 3 members that each put in 50 days to design the shirt (Assume their salarydistribution is based on design days/Total days per year). These shirts can be assembled by 4 people operating 1 complex machine operating with a rate of 100 shirts an hour. You get Lebron James to endorse the shirt for a one time rate. The trucks can ship out a max of 50000 of these shirts. Assume the plant is operation 365 days a year at 8 hrs a day. What is the standard cost we can associate with each shirt? Type Cost Unit Materials Fabric $ 0.40 per sq ft Thread $ 0.05 per yard Label $ 0.30 per sq in Logo $ 1.00 per logo Design Team (3 members) $ 65,000.00 annual salary per person Direct Labor $ 20.00 Lebron's Endorsement $ 100,000.00 flat rate Running Machines $ 800.00 Shipping $ 10,000.00 per truck per hour per hour
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