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n the current year, 10,000 seat belts have been produced and sold. The costs of producing a seat belt comprise the following: Direct materials $
n the current year, 10,000 seat belts have been produced and sold. The costs of producing a seat belt comprise the following: Direct materials $ 144 Direct labour 11* Variable manufacturing overhead 7** Total $ 162 * This is based on a direct labour rate of $22 per hour for 30 minutes. ** Variable overhead is allocated at a rate of $14 per direct labour hour. DDL's customers are pet boutiques across Canada. Boutique owners have been very pleased with the quality and design of the seat belts, and the sales price of $225 has been well received. In fact, a well-known pet products consumer website recently named DDL's seat belts as "excellent quality at a fair price." Orders are already being placed for next fiscal year
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