Relaxing with style is manufacturer of designer flip flops

Reference no: EM133650482

Question

Relaxing with Style is a manufacturer of designer flip flops. The cost of each pair of flip flops is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). Variable and fixed manufacturing overhead cost is allocated to each pair on the basis of budgeted direct manufacturing labor-hours per pair. For March 2019, each pair is budgeted to take 1.5 labor-hours. The budgeted variable manufacturing overhead cost per labor-hour is $10. The budgeted number of pairs to be manufactured in March 2019 is 2,500.

Reference no: EM133650482

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