Beta Electronics

• Beta Electronics has three departments: Production, Sales, and Administration.
• Production costs: Direct materials - $200,000, Direct labor - $100,000, Overhead - $60,000
• Sales costs: Salaries - $80,000, Commissions - $20,000, Advertising - $30,000
• Administration costs: Salaries - $70,000, Office supplies - $10,000, Utilities - $5,000

Requirement: Prepare a departmental expense report and analyze the cost structure of each department. Discuss ways to control and reduce costs in each department.

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