The total cost to make a pair of jeans is $21.
The entire cost to produce a pair of jeans is determined as follows:
Total cost for pair of jeans = Direct material cost + Direct labor cost + Overhead cost
= $ 6 + $ 10 + $ 5
= $ 21
Thus, a pair of jeans costs $21 to create in total.
Direct material cost is calculated as follows:
Direct material costs: $2 per yard and 3 yards are needed for a pair
Direct material cost = 3 yards * $ 2 per yard = $ 6
Direct material labor is calculated as follows:
Direct labor costs: $20 per hour and 0.5 hours are needed for a pair
Direct labor cost = 0.5 hours * $ 20 = $ 10
Overhead cost is calculated as follows:
Overhead costs: $5 per hour and 1 hour is needed for a pair
Overhead costs = 1 hour * $ 5 = $ 5
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