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Fixed manufacturing overhead per year
$148,500
In addition, the company has fixed selling and administrative costs of
$150,000 per year. During the year, Peak produces 45,000 snow blowers
and sells 30,000 snow blowers. How much is cost of goods sold using
full costing?
7.Question :
(TCO 6) Costs may be allocated to
8. Question :
(TCO 5) An allocation base
9. Question :
(TCO 6) The building maintenance department for Jones Manufacturing
Company budgets annual costs of $4,200,000 based on the expected
operating level for the coming year. The costs are allocated to two
production departments. The following data relate to the potential
allocation bases:
Production Dept. 1
Production Dept. 2
Square footage
15,000
45,000
Direct labor hours
25,000
50,000
If Jones assigns costs to departments based on square footage, how
much total costs will be allocated to Production Department 1
10. Question :
(TCO 7) A company is trying to decide whether to sell partially
completed goods in their current state or incur additional costs to finish
the goods and sell them as complete units. Which of the following is not
relevant to the decision?
11. Question :