Production workers for Solomon Manufacturing Company provided 3,700 hours of labor in January and 3,700 hours in February. The company, whose operation is labor intensive, expects to use 48,500 hours of labor during the year. Solomon paid a $111,550 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.) Month Allocated Cost January February
Production workers for Solomon Manufacturing Company provided 3,700 hours of labor in January and 3,700 hours in February. The company, whose operation is labor intensive, expects to use 48,500 hours of labor during the year. Solomon paid a $111,550 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.) Month Allocated Cost January February
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Production workers for Solomon Manufacturing Company provided 3,700 hours of labor in January and 3,700 hours in February. The
company, whose operation is labor intensive, expects to use 48,500 hours of labor during the year. Solomon paid a $111,550 annual
premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months.
Required
Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in
February? (Do not round intermediate calculations.)
Month Allocated Cost
January
February
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