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Could you explain in detail why is the answer $1,050,000? Lev's Clothing has two product lines that it manufactures, Jeans and shorts. Some summary manufacturing
Could you explain in detail why is the answer $1,050,000?
Lev's Clothing has two product lines that it manufactures, Jeans and shorts. Some summary manufacturing data are as follows. Overhead Jeans Shorts Total $ Units 900,000 160,000 Selling Price Unit $28.00 $25.00 Wages of Production Workers ($10 hr) 360,000 64,000 Direct Material $ 6,750,000 $ 800,000 Machine Set-Ups 1.200 800 Machine Utility $ 500.000 Machine Maintenance $ 900,000 Quality Control $ 300,000 Material Handling $ 1.750.000 Product Engineering $ 3,700.000 Rent of Mamifachuing Space $ 3.000.000 Security $ 750.000 Miscellaneous Production Expense $ 4.000.000 If batch-level costs were allocated based upon machine set-ups, how much would be allocated to jeans? A) $ 700,000 B) $1,050,000 C) $1,230,000 D) $1,750,000Step by Step Solution
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