FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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Transcribed Image Text: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
If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost?
Is the expert's salary a direct or an indirect cost?
Required C
Required D >
expand button
Transcribed Image Text: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 If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? Is the expert's salary a direct or an indirect cost? Required C Required D >
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