A pastry company allocates oven electricity costs based on baking time per batch. The budgeted oven electricity cost is $300,000, with an estimated 600,000 minutes of baking time for the period. If a batch of croissants takes 30 minutes to bake, what amount of electricity cost will be allocated to this batch?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...
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Subject is general account

A pastry company allocates oven electricity costs based on baking time per
batch. The budgeted oven electricity cost is $300,000, with an estimated
600,000 minutes of baking time for the period. If a batch of croissants takes
30 minutes to bake, what amount of electricity cost will be allocated to this
batch?
Transcribed Image Text:A pastry company allocates oven electricity costs based on baking time per batch. The budgeted oven electricity cost is $300,000, with an estimated 600,000 minutes of baking time for the period. If a batch of croissants takes 30 minutes to bake, what amount of electricity cost will be allocated to this batch?
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