Hickman & Reid manufactures hand-sewn silk ties. The Company applies overhead using direct labor hours as the application base. The direct labor quantity standard for making a tie is 6 minutes. The Company estimates overhead to be $2,250,000 for the coming year, based on production of 1,500,000 ties. What is the standard overhead cost per tie?

a). $1.50

b). $6.00

c). $8.00

d). &9.00

Answer rating: 100% (QA)

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