Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solar Salt has determined that its total manufacturing cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt

Solar Salt has determined that its total manufacturing cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units, batches, and lines respectively).

Total Manufacturing Costs

Agricultural Products

Retail Products

Unit-level costs

$210,000

9,000 units

13,000 units

Batch-level costs

280,000

40 batches

90 batches

Product line costs

210,000

11 lines

13 lines

$700,000

Revenues for the Agricultural Products totaled $600,000. Revenue for Retail Products totaled $350,000. How much will gross profit in the agriculture division be if Solar Salt adopts an activity-based costing system?

(Please round your answer to the nearest dollar at the end of your answer.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Accounting And Finance

Authors: Geoff Black

2nd Edition

0273711628, 978-0273711629

Students also viewed these Accounting questions

Question

Tell me what you know about our organization and the position.

Answered: 1 week ago