Question
Neal Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $60,000
| Neal Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $60,000 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,600 tents in January and 1,200 tents in February. For the entire year, the company expects to produce 20,000 tents. |
| Required: | |||
| c. | If the cost objective is to determine the cost per tent, is the experts salary a direct or an indirect cost? | ||
| |||
| d. | How much of the experts salary should be allocated to tents produced in January and February? |
| FOR LETTER "C" I GOT INDIRECT COST correct? | |
FOR LETTER "D" I GOT ANSWERS 4800 FOR JANUARY AND FOR FEB I GOT ANSWERS 3600 correct? PLEASE SHOW STEPS IF MY ANSWERS I WRONG PLEASE!!! |
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
