Yuma,IncManufactures Teddy Bears and Dolls

question 78

Multiple Choice

Yuma,Inc.manufactures teddy bears and dolls.Currently,Yuma makes 2,000 teddy bears each month.Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor.Yuma uses two activities in manufacturing the teddy bears: Sewing and Processing.The cost associated with Sewing is $15,000 a month,allocated on the basis of direct labor hours.The cost associated with Processing is $10,000 a month,allocated on the basis of batches.Teddy bears use 1/2 of the direct labor hours,and 35% of total batches.What is the total manufacturing cost for one teddy bear?

• A)$2.50
• B)$4.50
• C)$7.00
• D)$8.00

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Definitions:

Profit-Sharing Plans

A type of incentive program where employees receive a share of the company’s profits based on its performance, to motivate and reward them.

Strategic Objectives

High-level goals aligned with an organization's mission and vision, guiding its strategic direction.

Motivational Impact

The effect or influence of certain factors or actions on an individual's level of motivation.

Commission Pay Program

A compensation strategy where employees are paid based on the sales or deals they secure, encouraging higher performance.