Kandy Harts Manufactures Custom T-Shirts

question 128

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 long-sleeve T-shirt?

• A)$11.15
• B)$12.23
• C)$11.23
• D)$11.73

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