Kandy Harts Manufactures Custom T-Shirts

question 129

Multiple Choice

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 and standard quantity for direct labor?

• A)$16.00; 0.25 hour
• B)$19.20; 0.25 hour
• C)$4.80; 1 hour
• D)$4.80; 0.25 hour

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