Question: Yallow, Incorporated, manufactures teddy bears and dolls. Currently. Yallow makes 2,250 teddy bears each month. Each teddy bear uses $5.75 in direct materials and

Yallow, Incorporated, manufactures teddy bears and dolls. Currently. Yallow makes 2,250 teddy

Yallow, Incorporated, manufactures teddy bears and dolls. Currently. Yallow makes 2,250 teddy bears each month. Each teddy bear uses $5.75 in direct materials and $1.75 in direct labor. Yallow uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $16,875 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $11,250 a month, allocated on the basis of batches. The products have the following activity demands: Teddy Bears Dolls Direct labor hours 205 Batches 70 What is the total manufacturing cost for one teddy bear? 205 130

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