Crate Express Co. produces wooden crates used for shipping products by ocean liner. In 2025, Crate Express

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Crate Express Co. produces wooden crates used for shipping products by ocean liner. In 2025, Crate Express incurred the following costs.image



Assume Crate Express used an average 500 kilowatt-hours each month over the past year.



Instructionsa. What is Crate Express’s total manufacturing cost if it uses a variable costing approach?b. What is Crate Express’s total manufacturing cost if it uses an absorption costing approach?c. What accounts for the difference in manufacturing costs between these two costing approaches?

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Accounting Tools For Business Decision Making

ISBN: 9781119791058

8th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

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