Great Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor. During the most recent accounting period the company made 2,200 standard camping tents and 700 deluxe camping tents. Indirect manufacturing costs amounted to $126,400 and are allocated based on labor hours. Based on this information: Multiple Choice $8 of overhead cost should be allocated to each camping tent regardless of the type of tent made. $41.6 of overhead cost should be allocated to each camping tent regardless of the type of tent made $32 of overhead cost should be assigned to each standard camping tent and $80 of overhead cost should be assigned to each deluxe tent. None of the answers are correct. X

Great Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor. During the most recent accounting period the company made 2,200 standard camping tents and 700 deluxe camping tents. Indirect manufacturing costs amounted to $126,400 and are allocated based on labor hours. Based on this information: Multiple Choice $8 of overhead cost should be allocated to each camping tent regardless of the type of tent made. $41.6 of overhead cost should be allocated to each camping tent regardless of the type of tent made $32 of overhead cost should be assigned to each standard camping tent and $80 of overhead cost should be assigned to each deluxe tent. None of the answers are correct. X

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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