Exercise 4-37 (Algo) Target Costing (LO 4-3) Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that a new type of breakfast pastry would sell well for a price of $9.00 per dozen. Short estimates unit materials costs to be $4.90 for the pastry, and overhead costs would average $1.20 per dozen. The local wage rate for direct labor is $31.00 per hour. Short has a goal o earning an operating profit of 20.00 percent of production costs for each of its products. Required: What direct labor-hour input (hours per dozen) could Short Bakers allow for the new pastry and still achieve its profit goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum direct labor time per unit hours

Exercise 4-37 (Algo) Target Costing (LO 4-3) Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that a new type of breakfast pastry would sell well for a price of $9.00 per dozen. Short estimates unit materials costs to be $4.90 for the pastry, and overhead costs would average $1.20 per dozen. The local wage rate for direct labor is $31.00 per hour. Short has a goal o earning an operating profit of 20.00 percent of production costs for each of its products. Required: What direct labor-hour input (hours per dozen) could Short Bakers allow for the new pastry and still achieve its profit goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum direct labor time per unit hours

Name: Exercise 4-37 (Algo) Target Costing (LO 4-3)Short Bakers makes baked
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Description: Exercise 4-37 (Algo) Target Costing (LO 4-3)Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that anew type of breakfast pastry would sell well for a price of $9.00 per dozen.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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