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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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