1) Kandy Harts manufactures custom T-shirts. Each T-shirt can be imprinted front
ID: 2437480 • Letter: 1
Question
1) Kandy Harts manufactures custom T-shirts. Each T-shirt can be imprinted front and back with photos, company logos or other information. Each T-shirt requires 2 ounces of ink, 15 minutes of direct labor (processing, folding, packaging), and a plastic bag for packaging. The following information is available regarding costs: Short-sleeve T-shirts, 100-pack $350.00 Long-sleeve T-shirts, 100-pack 400.00 Direct labor, per hour 16.00 Ink, 32-ounce bottle 16.00 Plastic bags, 100-pack 8.00 Kandy applied overhead at a rate of $9.40 per direct labor hour, and fringe benefits for workers are an additional 20% of wages. What is the standard price of producing one short-sleeve T-shirt?
Explanation / Answer
the following is the calculation of standard price of producing one short sleeve T shirt.
one short sleeve T shirt ($350/100) $3.50 direct labour ($16 * 15 min / 60 min) $4.00 ink ($16 * 2 ounce / 32 ounce) $1.00 plastic bag ($8.00 / 100) $0.08 overhead ($9.40 * 15 min / 60 min) $2.35 fringe benefits ($4.00 direct labour cost*20%) $0.80 standard price of producing one short sleeve T shirt $11.73Related Questions
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