Yuma, Inc. manufactures teddy bears and dolls. Currently. Yuma makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor. Yuma uses two activities In manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $15,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $10,000 a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35% of total batches. What is the total manufacturing cost for one teddy bear? O $8.00 O $7.00 O $2.50 O $4.50

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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28.
Yuma, Inc. manufactures teddy bears and dolls. Currently, Yuma makes 2,000 teddy bears each month. Each teddy bear uses $2.00 In direct materlals and $0.50 In direct labor.
Yuma uses two activitles In manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewling Is $15,000 a month, allocated on the basis of direct labor
hours. The cost associated with Processing Is $10,000 a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35%% of total batches. What Is
the total manufacturing cost for one teddy bear?
O $8.00
$7.00
$2.50
O $4.50
ОО О
Transcribed Image Text:28. Yuma, Inc. manufactures teddy bears and dolls. Currently, Yuma makes 2,000 teddy bears each month. Each teddy bear uses $2.00 In direct materlals and $0.50 In direct labor. Yuma uses two activitles In manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewling Is $15,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing Is $10,000 a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35%% of total batches. What Is the total manufacturing cost for one teddy bear? O $8.00 $7.00 $2.50 O $4.50 ОО О
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