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Moosa International Corporation, manufactures teddy bears and dolls. Currently, Moosa makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and

Moosa International Corporation, manufactures teddy bears and dolls. Currently, Moosa makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor. Moosa uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $15,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $10,000 a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35% of total batches. What is the total manufacturing cost for one teddy bear? A) $2.50 B) $4.50 C) $7.00 D) $8.00 C B A COD

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