Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crate Express Co. produces wooden crates used for shipping products by ocean liner. In 2020, Crate Express incurred the following costs. Wood used in crate

Crate Express Co. produces wooden crates used for shipping products by ocean liner. In 2020, Crate Express incurred the following costs.

Wood used in crate production $53,000
Nails (considered insignificant and a variable expense) $350
Direct labor $40,000
Utilities for the plant:
$1,200 each month,
plus $0.40 for each kilowatt-hour used each month
Rent expense for the plant for the year $21,000

Assume Crate Express used an average 500 kilowatt-hours each month over the past year. (a) What is Crate Express's total manufacturing cost if it uses a variable costing approach?

Total manufacturing costs

$

(b) What is Crate Express's total manufacturing cost if it uses an absorption costing approach?

Total manufacturing costs

$

Save for Later

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Environment And Quality Audits A Risk Based Approach

Authors: Stephen Asbury

4th Edition

1032427574, 978-1032427577

More Books

Students also viewed these Accounting questions

Question

Give a brief defi ni tion of the terms population and sample.

Answered: 1 week ago