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Subatomic Shirts is planning on producing 40,000 t-shirts in the year. Each t-shirt requires 0.60 metres of material at $4 per metre and 0.15 hour
Subatomic Shirts is planning on producing 40,000 t-shirts in the year. Each t-shirt requires 0.60 metres of material at $4 per metre and 0.15 hour of direct labour at $18 per hour. Overhead is applied at the rate of $8 per direct labour hour. Calculate the following budgeted costs: a) Total metres of direct materials required to produce 40,000 t-shirts: metres b) Total direct material cost to produce 40,000 t-shirts: $ c) Total direct labour hours required to produce 40,000 t-shirts: d) Total direct labour cost to produce 40,000 t-shirts:$ hours e) Total manufacturing overhead cost applied in the production of 40,000 t-shirts:$ Now calculate the following standard costs per t-shirt (per unit): f) Direct material cost per t-shirt:$ per t-shirt g) Direct labour cost per t-shirt: $ h) Manufacturing overhead cost per t-shirt: S ) Standard cost of one unit of product:$ per t-shirt per t-shirt per t-shirt
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