Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $158,000 $193,000 $208,000 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** 1,090 1,900 590 *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,090 a month; however, the insurance is paid four times yearly in the first month of the quarter (I.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are 1,090 1,900 590 a. $156,000 b. $204,250 O c. $252,500 Od. $48,250 1,090 1,900 590

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $158,000 $193,000 $208,000 Manufacturing costs* Insurance expense Depreciation expense Property tax expense* 1,090 1,900 590 Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. Insurance expense is $1,090 a month; however, the insurance is paid four times yearly in the first month of the quarter (I.e., January, April, July, and October). Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are 1,090 1,900 590 a. $156,000 b. $204,250 O c. $252,500 Od. $48,250 1,090 1,900 590

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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