Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
C:the chance you take that your investments will lose their value
Answer:
Overhead= $12,420
Explanation:
Giving the following information:
Wolf Company used $5,940 of indirect raw materials and $6,480 of indirect factory labor during the period.
Factory overhead costs are the costs that can't be directly assigned to a product, service or job. This is why companies assigned overhead using manufacturing overhead rates.
In this case, the overhead is the sum if indirect material and indirect labor:
Overhead= 5,940 + 6,480= $12,420
