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Lavender Manufacturing Company began business in the current year. The company uses the simplified method to allocate mixed services costs to production. The company's
Lavender Manufacturing Company began business in the current year. The company uses the simplified method to allocate mixed services costs to production. The company's costs and expenses for the year were as follows. Direct labor $3,000,000 Direct materials 4,000,000 Factory supervision 800,000 Property tax on factory 100,000 Personnel department 400,000 Computer operations 250,000 General administration 550,000 Marketing 800,000 State income tax 200,000 $10,100,000 a. Complete the statement below that outlines Lavender's total production costs for the year. Round any division to four decimal places before converting to a percentage. For example: .46358 would be rounded to .4636 and converted to 46.36%. Round the final answers to the nearest dollar. Lavender's total production costs include 7,900,000 of direct costs and $ of allocated mixed costs.
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