ABC Company spends $500,000 for janitorial services for its factory. The factory has 1,000,000 square feet of space. The Company paid Social Security and Medicare Taxes of $7,650,000 dollars on $100,000,000 of wages paid to workers who earned an average of $25.00 per hour. Producing 50,000 gallons of Flat Wall Enamel required the use of 1,000 square feet of space and 2,000 hours of labor. The Activity Based Cost of janitorial services, payroll taxes, and labor per gallon of Enamel is: a. $1.18. b. $1,87. c. $1,78. d. $1.09. e. $1.90.

ABC Company spends $500,000 for janitorial services for its factory. The factory has 1,000,000 square feet of space. The Company paid Social Security and Medicare Taxes of $7,650,000 dollars on $100,000,000 of wages paid to workers who earned an average of $25.00 per hour. Producing 50,000 gallons of Flat Wall Enamel required the use of 1,000 square feet of space and 2,000 hours of labor. The Activity Based Cost of janitorial services, payroll taxes, and labor per gallon of Enamel is: a. $1.18. b. $1,87. c. $1,78. d. $1.09. e. $1.90.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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