Question
Jason Allen manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, company logos or other information. Each T-shirt requires 2
Jason Allen manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, company logos or other information. Each T-shirt requires 2 ounces of ink, 15 minutes of direct labor (processing, folding, packaging), and a plastic bag for packaging. The following information is available regarding costs: Short-sleeve T-shirts, 100-pack $340.00 Long-sleeve T-shirts, 100-pack 400.00 Direct labor, per hour 16.00 Ink, 32-ounce bottle 16.00 Plastic bags, 100-pack 8.00 Jason applied overhead at a rate of $9.40 per direct labor hour, and fringe benefits for workers are an additional 20% of wages. What is the standard cost of producing one short-sleeve T-shirt? $12.13 $10.63 $11.63 $10.55
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