8- Suppose that a cement factory has a normal production capacity of 80.000 tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are the data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL, (c) Factory overhead 1.000.000 TL. As an internal auditor, you have explored that 100% of the direct labor costs and 80% of the factory overhead is fixed. Now, what would be the cost of cement sold when normal absorption costing is used? 450.000 TL O 500.000 TL 550.000 TL 600.000 TL

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...
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8- Suppose that a cement factory has a normal production capacity of 80.000
tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are
the data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL,
(c) Factory overhead 1.000.000 TL. As an internal auditor, you have explored that
100% of the direct labor costs and 80% of the factory overhead is fixed. Now,
what would be the cost of cement sold when normal absorption costing is used?
450.000 TL
500.000 TL
550.000 TL
600.000 TL
Transcribed Image Text:8- Suppose that a cement factory has a normal production capacity of 80.000 tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are the data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL, (c) Factory overhead 1.000.000 TL. As an internal auditor, you have explored that 100% of the direct labor costs and 80% of the factory overhead is fixed. Now, what would be the cost of cement sold when normal absorption costing is used? 450.000 TL 500.000 TL 550.000 TL 600.000 TL
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