Kandy Harts Manufactures Custom T-Shirts

question 136

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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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults on the repayment terms.

Venture Capital Firms

Companies that invest in startups and early-stage companies with high growth potential in exchange for equity.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Borrower

An individual or entity that receives funds from a lender under the agreement that the funds will be repaid, typically with interest, over a period of time.