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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 63P: Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage...

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