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Nilco Inc. makes three models of running shorts: The Zip, the Flash, and the Sonic Boom. Manufacturing information for each model is provided below: Model
Nilco Inc. makes three models of running shorts: The Zip, the Flash, and the Sonic Boom. Manufacturing information for each model is provided below:
Model | Direct Materials Cost | Direct Labour Hours |
Zip | 2.45 | 0.50 |
Flash | 3.25 | 0.75 |
Sonic Boom | 4.15 | 1.25 |
Nilco's direct labour costs are 12 per hour. Nilco also allocates overhead based on direct labor hours, with a predetermined rate of 3.50 per hour. Given these figures, what is the total cost of producing one pair of Zip shorts?
19.15
12.25
10.35
10.20
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