Yallow, Incorporated, manufactures teddy bears and dolls. Currently, Yallow makes 2,400 teddy bears each month....
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Yallow, Incorporated, manufactures teddy bears and dolls. Currently, Yallow makes 2,400 teddy bears each month. Each teddy bear uses $8.00 in direct materials and $2.50 in direct labor. Yallow uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $18,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $12,000 a month, allocated on the basis of batches. The products have the following activity demands: Direct labor hours Teddy Bears 208 Dolls 208 Batches 91 169 What is the total manufacturing cost for one teddy bear? Multiple Choice $10.50 $16.00 $12.50 $15.00
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