Hii ticher please given correct answer general Accounting question Company ABC has manufacturing plants P and Q.Total utility expense is $48,000. Plant P's direct utilitycost is $8,000 and Plant Q's is $12,000. Remainingindirect utility costs should be allocated equallybetween plants.Calculate total utility expense for each plant.

Step 1: Define Total Utility Expense CalculationThe total utility expense for each plant is…

Answered: Company ABC has manufacturing plants P…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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Company ABC has manufacturing plants P and Q. Total utility expense is $48,000. Plant P's direct utility cost is $8,000 and Plant Q's is $12,000. Remaining indirect utility costs should be allocated equally between plants. Calculate total utility expense for each plant.