Mister Tee's is a T shirt manufacturing business with the following fact pattern:

T shirts are processed in batches of 100

One T shirt requires one yard of fabric

One yard of fabric costs $4

Five direct labor hours are required to produce one batch of T shirts

Direct labor costs $20/hour

Direct labor is applied at the beginning of the process

Factory overhead is applied at a rate of 130% of Direct Labor Dollars

Factory overhead is applied at the end of the process

In the current period, Mister Tee had Cost of Goods Manufactured of $8,190, Cost of Goods Available for sale of 18 batches and Ending Inventory of $2,520. If Mister Tee sells each T shirt for $10, what is gross margin (gross profit percentage) for the current period?

Group of answer choices

63%

37%

58.5%

67.85%