Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Express Co. produces wooden crates used for shipping products by ocean liner. In 2022, Cullumber Express incurred the following costs. Wood used in Cullumber

Cullumber Express Co. produces wooden crates used for shipping products by ocean liner. In 2022, Cullumber Express incurred the following costs.

Wood used in Cullumber production $56,000
Nails (considered insignificant and a variable expense) $370
Direct labor $40,600
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 $24,100

Assume Cullumber Express used an average 600 kilowatt-hours each month over the past year. (a) What is Cullumber Express's total manufacturing cost if it uses a variable costing approach?

Total manufacturing costs

$enter the total manufacturing costs in dollars

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

Total manufacturing costs

$enter the total manufacturing costs in dollars

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

What are the strengths of each option?

Answered: 1 week ago

Question

What is focal length? Explain with a diagram and give an example.

Answered: 1 week ago

Question

What is physics and how does it apply in daily life?

Answered: 1 week ago

Question

What is the relation of physical mathematics with examples?

Answered: 1 week ago