Question
Liverpool, Inc., manufactures and sells snowboards. Liverpools CEO is planning to sell 2200 snowboards and produce 1,800 snowboards during June. Each unit requires 5 board
Liverpool, Inc., manufactures and sells snowboards. Liverpools CEO is planning to sell 2200 snowboards and produce 1,800 snowboards during June. Each unit requires 5 board feet of wood, 6 yards of fiberglass and 0.70 hours of direct labor. Employees of the company are paid $13.00 per hour. Manufacturing overhead is applied at a rate of 140% of direct labor costs. The company wants to have 10% of the wood and fiberglass needed for the next months production available at the end of each month. How much manufacturing overhead will be charged to each snowboard sold during June?
11.58
9.10
14.06
12.74
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