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Double Boe & Co. is planning to sell 800 boxes of ceramic tile (at $40 per box), with production estimated at 870 boxes during May.
Double Boe & Co. is planning to sell 800 boxes of ceramic tile (at $40 per box), with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Factory overhead is applied at a rate of 110% of direct labor costs. Double Boe & Co. has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. Selling and administrative expenses are all variable and are 20% of Sales What is the unit price per box of ceramic tile? O A. $20.60 O B. $22.66 OC. $20.90 OD. $23.90
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