Sunrise Snacks produces frozen meals. Utility costs are allocated to the products based on the cooking time required for each product. The total budgeted utility cost for the period is $300,000, and the company anticipates 600,000 total minutes of cooking time. If a batch of pasta requires 30 minutes to cook, how much utility cost will be allocated to the pasta? a. $10 b. $20 c. $15 d. $25

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...
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Sunrise Snacks produces frozen meals. Utility costs are
allocated to the products based on the cooking time required
for each product. The total budgeted utility cost for the
period is $300,000, and the company anticipates 600,000
total minutes of cooking time. If a batch of pasta requires 30
minutes to cook, how much utility cost will be allocated to
the pasta?
a. $10
b. $20
c. $15
d. $25
Transcribed Image Text:Sunrise Snacks produces frozen meals. Utility costs are allocated to the products based on the cooking time required for each product. The total budgeted utility cost for the period is $300,000, and the company anticipates 600,000 total minutes of cooking time. If a batch of pasta requires 30 minutes to cook, how much utility cost will be allocated to the pasta? a. $10 b. $20 c. $15 d. $25
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