163. CSO: 1C1c LOS: 1C1e
Loyal Co. produces three types of men’s undershirts: T-shirts, V-neck shirts, and athletic
shirts. In the Folding and Packaging Department, operations costing is used to apply
costs to individual units, based on the standard time allowed to fold and package each
type of undershirt. The standard time to fold and package each type of undershirt is as
follows.
T-shirt 40 seconds per shirt
V-neck shirt 40 seconds per shirt
Athletic shirt 20 seconds per shirt
59
During the month of April, Loyal produced and sold 50,000 T-shirts, 30,000 V-neck
shirts, and 20,000 athletic shirts. If costs in the Folding and Packaging Department were
$78,200 during April, how much folding and packaging cost should be applied to each T-
shirt?
a. $.52134.
b. $.6256.
c. $.7820.
d. $.8689.
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