Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rundle manufacturing company makes tents that it s

Rundle Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order...

60.1K

Verified Solution

Question

Accounting

Rundle Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $90,450 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,600 tents in January and 1,110 tents in February. For the entire year, the company expects to produce 13,500 tents.
Required
a. As the number of tents inspected increases, does the amount of fixed cost increase, decrease, or stay the same?
b. As the number of tents inspected increases, does the fixed cost per unit increase, decrease, or stay the same?
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?
Complete this question by entering your answers in the tabs below.
\table[[Required A]]
As the number of tents inspected increases, does the amount of fixed cost increase, decrease, or stay the same?
As the number of tents inspected increases, the amount of fixed cost
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students