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Jackson Industries produces two products. The products' estimated costs are as follows: Product A Product B Direct Materials $20,000 $15,000 Direct Labor $30,000 $10,000 The
Jackson Industries produces two products. The products' estimated costs are as follows:
Product A | Product B | |
Direct Materials | $20,000 | $15,000 |
Direct Labor | $30,000 | $10,000 |
The company's overhead costs of $200,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the total amount of production costs that would be assigned to Product A? (Do not round intermediate calculations.)
a.$200,000 | ||
b.$75,000 | ||
c.$50,000 | ||
d.$150,000 | ||
e.$114,285.71 |
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