Kandy Harts Manufactures Custom T-Shirts

question 58

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 manufacturing overhead?

• A) $11.28; 0.25 hour
• B) $9.40; 0.25 hour
• C) $2.35; 1 hour
• D) $2.82; 0.25 hour

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Definitions:

Contributory Pension Plans

Retirement plans where both the employer and employees contribute to the fund that will be used to provide retirement benefits to the employees.

Contributions

The act of giving or adding to something larger, often refers to financial contributions in a business or investment context but can also apply to contributions of time, effort, or resources.

Household Income

The combined gross income of all members of a household who are 15 years old and higher, regardless of their relationship.

Dental Care Insurance

A type of insurance coverage that pays for part or all of the costs associated with dental health, including preventive care, treatments, and surgeries.