QUESTION 36 The following information is available for Sweet Dairy Air, Inc. The Purchasing Department, which is responsible for purchasing materials for various products, has costs of $73,000. The Janitorial Department has costs of $25,000. Overhead Product 1 Product 2 Product 3 Purchasing 10,000 purchases 25,000 purchases 15,000 purchases Janitorial 1,000 square feet 1,500 square feet 1,500 square feet What is the total amount that should be allocated to Product 1?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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QUESTION 36
The following information is available for Sweet Dairy Air, Inc. The Purchasing Department, which is responsible for purchasing materials for various products, has costs of $73,000. The Janitorial
Department has costs of $25,000.
Overhead
Product 1
Product 2
Product 3
Purchasing
10,000 purchases
25,000 purchases
15,000 purchases
Janitorial
1,000 square feet
1,500 square feet
1,500 square feet
What is the total amount that should be allocated to Product 1?
Transcribed Image Text:QUESTION 36 The following information is available for Sweet Dairy Air, Inc. The Purchasing Department, which is responsible for purchasing materials for various products, has costs of $73,000. The Janitorial Department has costs of $25,000. Overhead Product 1 Product 2 Product 3 Purchasing 10,000 purchases 25,000 purchases 15,000 purchases Janitorial 1,000 square feet 1,500 square feet 1,500 square feet What is the total amount that should be allocated to Product 1?
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