Kandy Harts Manufactures Custom T-Shirts

question 115

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 of producing one short-sleeve T-shirt?

• A)$10.65
• B)$11.73
• C)$10.73
• D)$12.23

---

Definitions:

Experimentation

The process of conducting a controlled test or investigation to explore hypotheses, observe effects, and gain new knowledge, commonly used in scientific research, product development, and process improvement.

Performance Standards

Benchmarks or criteria used to assess the quality or effectiveness of an individual's work, guiding expectations and evaluations in organizational contexts.

Quality

The degree to which a product, service, or process meets specified requirements and satisfies customer expectations.

Mary Parker Follett

An early 20th-century social worker, management consultant, and pioneer in the fields of organizational theory and organizational behavior.