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Yallow, Incorporated, manufactures teddy bears and dolls. Currently, Yallow makes 2,950 teddy bears each month....

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Accounting

Yallow, Incorporated, manufactures teddy bears and dolls. Currently, Yallow makes 2,950 teddy bears each month. Each teddy bear uses $16.25 in direct materials and $5.25 in direct labor. Yallow uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $22,125 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $14,750 a month, allocated on the basis of batches. The products have the following activity demands:
\table[[,\table[[Teddy],[Bears]],Dolls],[Direct labor hours,219,219],[Batches,168,312]]
What is the total manufacturing cost for one teddy bear?
Multiple Choice
$26.00
$27.00
$21.50
$2350
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