Benson Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $116,550 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,580 tents in January and 1,240 tents in February. For the entire year, the company expects to produce 18,500 tents. Required c. If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? d. How much of the expert's salary should be allocated to tents produced in January and February? Complete this question by entering your answers in the tabs below. Required C Required D How much of the expert's salary should be allocated to tents produced in January and February? (Do not round intermediate calculations.) Month January February Amount Allocated < Required C Required D
Benson Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $116,550 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,580 tents in January and 1,240 tents in February. For the entire year, the company expects to produce 18,500 tents. Required c. If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? d. How much of the expert's salary should be allocated to tents produced in January and February? Complete this question by entering your answers in the tabs below. Required C Required D How much of the expert's salary should be allocated to tents produced in January and February? (Do not round intermediate calculations.) Month January February Amount Allocated < Required C Required D
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 3P: Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The...
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