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Superstore incurs variable manufacturing overhead costs of $12 per unit and fixed manufacturing overhead cost of $650,000 per month. Of the fixed expense, $240,000 relates
Superstore incurs variable manufacturing overhead costs of $12 per unit and fixed manufacturing overhead cost of $650,000 per month. Of the fixed expense, $240,000 relates to depreciation each month. Sloan Inc. produced and sold 60,000 units in January and 48,000 units in February. 60% of each month's expense is paid for in the month incurred, and the other 40% is paid in the following month. What amount would Sloan Inc. Include for manufacturing overhead expense on its February income statement? a. $1,226,000 b. $986,000 c. $1,043,600 d. $1,130,000
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