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Answer As Soon as possible Cat Company makes metal signs for businesses and residences. These signs are made of sheet metal, which the owner paints
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Cat Company makes metal signs for businesses and residences. These signs are made of sheet metal, which the owner paints by hand. The owner is concerned that he does not have a good measure of support costs for the signs. Close investigation of the business reveals that $20 per direct labor hour which currently is used to assign support costs to the signs, is not a good measure of support cost. The owner believes that materials cost is a better cost driver for the support costs. Cat Company has the following information available: Small Sign Large Sign Materials cost $300 $700 Direct labor hours 10 11 Using materials cost as a cost driver, how much of the $1,500 support cost is assigned to the large sign? O A) $160 B) $1,050 C) $110 D) $200 Advertising is an example of the function of the value chainStep by Step Solution
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