MANAGERIAL ACCOUNTING HANDOUT PROBLEM 10 Score Name Section Problem (10 points). Washington Company manufactures sailboats, Currently the company makes the boats' seat covers. The total cost of producing 1,200 scat covers is provided below WASHINGTON COMPANY COSTS TO PRODUCE BATCH (1200) OF SEAT COVERS Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 1.260 1,440 960 2.400 6,060 Total Cost A company has approached Washington and indicated that they will sell seat covers to Washington for S4 each. In addition, Washington would pay S0.20 per seat cover to deliver the scat covers to its manufacturing plant, where it would add its own Washington label at a cost of $0.06 per seat cover