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In the first year of operation, Jones Company purchased an insurance policy for $9000, of which 80% applies to manufacturing operations and 20% applies to
In the first year of operation, Jones Company purchased an insurance policy for $9000, of which 80% applies to manufacturing operations and 20% applies to selling & administrative activities. In the first year, Jones produced 10,000 units and sold 7,000 units.
What amount of the total insurance premium should be included (expensed) in the income statement at the end of the first year under variable costing system?
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