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Problem 1 2 - 1 7 A ( Algo ) Cost allocation in a manufacturing company LO 1 2 - 1 , 1 2 -

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Problem 12-17A (Algo) Cost allocation in a manufacturing company LO 12-1,12-2,12-3
Jordan Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $78,200 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,580 tents in January and 1,160 tents in February. For the entire year, the company expects to produce 11,500 tents.
Required
a. As the number of tents inspected increases, does the amount of fixed cost increase, decrease, or stay the same?
b. As the number of tents inspected increases, does the fixed cost per unit increase, decrease, or stay the same?
c. If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost?
d. How much of the expert's salary should be allocated to tents produced in January and Februarv?
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