Zachary Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order...
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Zachary Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mailorder marketing program. The company pays a quality control expert $ per year to inspect completed tents before they are shipped to customers. Assume that the company completed tents in January and tents in February. For the entire year, the company expects to produce tents. Required 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, does the fixed cost per unit increase, decrease, or stay the same? If the cost objective is to determine the cost per tent, is the experts salary a direct or an indirect cost? How much of the experts salary should be allocated to tents produced in January and February?
Zachary Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mailorder marketing program. The company pays a quality control expert $ per year to inspect completed tents before they are shipped to customers. Assume that the company completed tents in January and tents in February. For the entire year, the company expects to produce tents.
Required
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, does the fixed cost per unit increase, decrease, or stay the same?
If the cost objective is to determine the cost per tent, is the experts salary a direct or an indirect cost?
How much of the experts salary should be allocated to tents produced in January and February?
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