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:
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 long-sleeve T-shirt?
A) $11.15
B) $12.23
C) $11.23
D) $11.73

Question

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:
  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 long-sleeve T-shirt? 
A) $11.15 
B) $12.23 
C) $11.23 
D) $11.73

Quizplus · Accepted Answer

$400 ÷100 + 2/32 x $16 + $8 ÷100 + $19.20 x 0.25 + $9.40 x 0.25 =
$4.00 + $1.00 + $0.08 + $4.80 + $2.35 = $12.23

Kandy Harts Manufactures Custom T-Shirts