Innovative designs manufacture wooden crates. Following is the cost related to company: Wood used in crate production Nails (insignificant and variable expense) $54,000 $350 Direct labor $38,000 Plant utilities: $1,500 each month, plus $0.40 for each kwh used each month Annual rent expense $21,400 Innovative designs use 500 kwh each month. Total manufacturing cost for the year under variable costing approach is: a. $94,750 b. $134,150 c. $94,400 d. $92,550
Innovative designs manufacture wooden crates. Following is the cost related to company: Wood used in crate production Nails (insignificant and variable expense) $54,000 $350 Direct labor $38,000 Plant utilities: $1,500 each month, plus $0.40 for each kwh used each month Annual rent expense $21,400 Innovative designs use 500 kwh each month. Total manufacturing cost for the year under variable costing approach is: a. $94,750 b. $134,150 c. $94,400 d. $92,550
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1PA: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850...
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