Innovative designs manufacture wooden crates. Following is the cost related to company: Wood used in crate production Nails (insignificant and variable expense) $54,000 $350 Direct labor $38,000 Plant utilities: $1,500 each month, plus $0.40 for each kwh used each month Annual rent expense $21,400 Innovative designs use 500 kwh each month. Total manufacturing cost for the year under variable costing approach is: a. $94,750 b. $134,150 c. $94,400 d. $92,550

Innovative designs manufacture wooden crates. Following is the cost related to company: Wood used in crate production Nails (insignificant and variable expense) $54,000 $350 Direct labor $38,000 Plant utilities: $1,500 each month, plus $0.40 for each kwh used each month Annual rent expense $21,400 Innovative designs use 500 kwh each month. Total manufacturing cost for the year under variable costing approach is: a. $94,750 b. $134,150 c. $94,400 d. $92,550

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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