Question

Production workers for Kennedy Manufacturing Company provided 300 hours of labor in January and 600 hours in February. Kennedy expects to use 5,000 hours of labor during the year. The rental fee for the manufacturing facility is $7,500 per month.

Required
Explain why allocation is needed. Based on this information, how much of the rental cost should be allocated to the products made in January and to those made in February?



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  • CreatedFebruary 07, 2014
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