Q11:

Yusuf Company manufactures wooden rocking chairs. The company identified the following three material costs in its production process for July: $100,000 for springs for the rocking mechanism; two springs at a cost of $10 each are used in each chair; $1,700 for glue used as needed from one gallon containers; and $500 for stain used to touch up spots on the chairs. The total cost that should have been assigned to indirect material for July was:

a.

$500

b.

$1,700

c.

$102,200

d.

$2,200