Outsourcing and capacity utilization - PlayTime, Inc., is a leading

Selling price per box $86.00Costs per box Direct materials $17.00Direct labor 18.75Variable manufacturing overhead 7.00Fixed manufacturing overheada 6.25Variable selling and administrative“ 10.00Fixed selling and administrative“ 7.00 Total cost per box 66.00 Profit per box $20.00 aAllocated to products based on expected production volume.hPer unit variable selling and administrative costs are the same for all products.