A 3-person design team spent 15 days designing the jeans. These jeans can be produced at a rate of 80 pairs per hour with 2 operators. A truck can ship a maximum of 75,000 pairs of jeans. Your marketing team has secured a huge one-time endorsement from Harry Styles for these new jeans. All associated costs are summarized in the table below.
Assume that the plant produces these jeans operates 365 days a year for 10 hours a day. If Levi's plans to produce 3,000,000 pairs of flare jeans, what is the standard cost that we can associate with each pair?
 

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Reason for Cost Cost Unit Raw Materials $ 4.00 per pair per hour $500 per hour Direct Labor (operators) per person Machine Operations Shipping (Max 75,000 pairs/truck) Design Team Salary per person 24.00 $ 21,000.00 $ 82,000.00 $ 700,000.00 per truck annually Harry Styles Endorsement one time Reason for Cost Cost Unit Raw Materials $ 4.00 per pair per hour $500 per hour Direct Labor (operators) per person Machine Operations Shipping (Max 75,000 pairs/truck) Design Team Salary per person 24.00 $ 21,000.00 $ 82,000.00 $ 700,000.00 per truck annually Harry Styles Endorsement one time

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