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Flura [38]
3 years ago
9

Kelly received a cookbook in the mail that she had not ordered. the packing slip read: " return this book to the publisher withi

n 14 days or send a check for 35 to the address below." kelly did not return the book within the 14 days and she has not sent the money as requested. is kelly required to pay for the cookbook?
Business
1 answer:
LenaWriter [7]3 years ago
8 0
Kelly ethically should be responsible for paying the $35. This is because she did not return the book within time in hopes of it getting to the person who ordered it, therefore could be considered a thieve if she does not pay for it.
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olga2289 [7]
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$380,000

Explanation:

Particulars                                           Product 1 (Amount)

Sales                                                          $1,400,000

(-) Direct materials                                   ($200,000)

(-) Direct labor                                          ($600,000)

<u>(-) Manufacturing overhead </u>

Batch level ($400,000*20/80)                 ($100,000)

Product line level ($600,000*10/50)       <u>($120,000)</u>

Gross margin                                            <u>$380,000</u>

So, Dakota Company's gross margin for Product 1 using activity based costing is $380,000

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