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Alex777 [14]
3 years ago
12

Linden, Inc. uses a 6,400 square foot factory space that it rents for $3,050 a month for all its manufacturing activities. Linde

n has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,800 square feet of the factory are used for machining, while 1,500 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 600 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Business
1 answer:
Gemiola [76]3 years ago
7 0

Answer:

Rent assigned to preparation and setup cost pool is $714.84

Explanation:

Preparation and setup takes 1,500 square feet out of the total 6,400 square feet available,hence the factory rent assigned to preparation and setup from the total rent of $3,050 i calculated thus:

Preparation and setup assigned rent=total rent/total square feet*preparation and setup square feet

=$3050/6400*1500

=$714.84

That represents the rent amount attributable to preparation and setup cost pool on monthly basis

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2 years ago
Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-peri
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e. none of the choices.

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3 0
3 years ago
A firm has just ended the calendar year making a sale in the amount of​ $200,000 of merchandise purchased during the year at a t
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$90,000

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5 0
3 years ago
As a server you earn $60000 per year, including tips. Someone offers you a new job as an economic consultant, which pays $100,00
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The correct option is B

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<u>The accounting profit can be calculated with the help of following given formula </u>

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3 years ago
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