Estimate the per item selling price of new line of clothing

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Reference no: EM13833485

You have been asked to estimate the per item selling price of a new line of clothing. Pertinent data are the following:

Direct labor rate: $15.00 per hour

Production material: $375 per 100 items

Factory overhead: 125 % of direct labor

Packaging cost: 75 % of direct labor

Desired profit: 29 % of total manufacturing cost

Past experience has shown that an 80 % learning curve applies to the labor required for producing these items. The time to complete the first item has been estimated to 1.76 hours. Use the estimated time complete item number 50 as your standard time for the purpose estimating the selling price per item( rounded to the nearest cent).

Reference no: EM13833485

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