The Bello Horizonte Company is a textile company that specializes in manufacturing promotional items for jackets with embroidered logos. It uses machine hours as the only allocation base. These are the estimates for next year. We also have the estimates for the jackets that the EGAE asks us to promote its new eMBA. What is the amount of indirect costs that will be distributed or allocated (allocated) to EGAE's work? Company eMBA EGAE Direct Materials $40,000 $2,000 Direct Labor $10,000 $400
The Bello Horizonte Company is a textile company that specializes in manufacturing promotional items for jackets with embroidered logos. It uses machine hours as the only allocation base. These are the estimates for next year. We also have the estimates for the jackets that the EGAE asks us to promote its new eMBA. What is the amount of indirect costs that will be distributed or allocated (allocated) to EGAE's work? Company eMBA EGAE Direct Materials $40,000 $2,000 Direct Labor $10,000 $400
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
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The Bello Horizonte Company is a textile company that specializes in manufacturing promotional items for jackets with embroidered logos. It uses machine hours as the only allocation base. These are the estimates for next year. We also have the estimates for the jackets that the EGAE asks us to promote its new eMBA. What is the amount of indirect costs that will be distributed or allocated (allocated) to EGAE's work?
Company | eMBA EGAE | |
Direct Materials | $40,000 | $2,000 |
Direct Labor | $10,000 | $400 |
$45,000 | ||
Manufacturing Hours | 100,000 mh | 900 mh |
Required: How much will the total cost of the eMBA EGAE order be?
a. $2,805
b. $1,920
c. $1,970
d. $2,905
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