QUESTION 36 The following information is available for Sweet Dairy Air, Inc. The Purchasing Department, which is responsible for purchasing materials for various products, has costs of $73,000. The Janitorial Department has costs of $25,000. Overhead Product 1 Product 2 Product 3 Purchasing 10,000 purchases 25,000 purchases 15,000 purchases Janitorial 1,000 square feet 1,500 square feet 1,500 square feet What is the total amount that should be allocated to Product 1?

QUESTION 36 The following information is available for Sweet Dairy Air, Inc. The Purchasing Department, which is responsible for purchasing materials for various products, has costs of $73,000. The Janitorial Department has costs of $25,000. Overhead Product 1 Product 2 Product 3 Purchasing 10,000 purchases 25,000 purchases 15,000 purchases Janitorial 1,000 square feet 1,500 square feet 1,500 square feet What is the total amount that should be allocated to Product 1?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the Inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1.000 units were in ending inventory? A. $1,000 B. $13,000 C. $130.000 D. $20.000
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