Question
Kandy Harts 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
Kandy Harts 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 | $350.00 |
| 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 |
Kandy 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 price of producing one short-sleeve T-shirt?
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
