Question
Yuma, Incorporated, manufactures teddy bears and dolls. Currently, Yuma makes 2,950 teddy bears each month. Each teddy bear uses $16.25 in direct materials and $5.25
Yuma, Incorporated, manufactures teddy bears and dolls. Currently, Yuma makes 2,950 teddy bears each month. Each teddy bear uses $16.25 in direct materials and $5.25 in direct labor. Yuma uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $22,125 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $14,750 a month, allocated on the basis of batches. Teddy bears use 50% of the direct labor hours and 35% of total batches. What is the total manufacturing cost for one teddy bear?
Question 21 options:
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$23.50
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$26.00
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$21.50
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$27.00
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