Question
(JSGS) sells a variety of sporting goods and clothing. In a back room, JSGS has set up heat-transfer equipment to personalize t-shirts for Little League
(JSGS) sells a variety of sporting goods and clothing. In a back room, JSGS has set up heat-transfer equipment to personalize t-shirts for Little League teams. Typically, each team has the name of the individual player put on the back of the tshirt. Last week, Taffy, coach of the Stingers, brought in a list of names for her team. Her team consisted of 12 players with the following names: Freda, Cara, Katie, Tara, Heather, Sarah, Kim, Jennifer, Mary Beth, Elizabeth, Kyle, and Wendy. Taffy was quoted a price of $0,50 per letter. Russel is a JSGSs newest employee, was assigned to Taffys job. He selected the appropriate letters, arranged the letters in each name carefully on a shirt, and heat-pressed them on. When Taffy returned, she was appalled to see that the names were on the front of the shirts. Jackson, owner of JSGS, assured Taffy that the letters could easily be removed by applying more heat and lifting them off. This process ruins the old letters, so new letters must then be placed correctly on the shirt backs. He promised to correct the job immadiately and have it ready in an hour and a half. Cost for heat-transferring are as follows: Letters (each) $ 0,15 DL (per hour) $ 8 OH (per DLH) $ 4 Taffys job originally took one hour of DLH. The removal process goes more quickly and should take only 15 minutes. Required: a. What was the original cost of Taffys job? b. What is the cost of rework on Taffys job? How should the rework cost be treated? c. How much did Jackson charge Taffy?
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