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Walton Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail - order marketing program. The company pays a quality control
Walton Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mailorder marketing program. The company pays a quality control expert $ per year to inspect completed tents before they are shipped to customers. Assume that the company completed tents in January and tents in February. For the entire year, the company expects to produce tents.
Required
If the cost objective is to determine the cost per tent, is the experts salary a direct or an indirect cost?
How much of the experts salary should be allocated to tents produced in January and February?Walton Manufacturing Company makes tents that it sells directly to camping enthusiasts
through a mailorder marketing program. The company pays a quality control expert
$ per year to inspect completed tents before they are shipped to customers.
Assume that the company completed tents in January and tents in February.
For the entire year, the company expects to produce tents.
Required
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
February?
If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost?
Is the expert's salary a direct or an indirect cost?
How much of the expert's salary should be allocated to tents produced in January and February? Do not round intermediate
calculations.
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