Dinoco manufactures racing products in a manufacturing facility with a total of 25,000 square feet of theoretically
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Dinoco manufactures racing products in a manufacturing facility with a total of 25,000 square feet of theoretically usable space. However, they can only practically use 80% of that space for production. During 2021, the company incurred $120,000 in direct materials and $80,000 in direct labor. Total overhead costs associated with the manufacturing facility were $343,000. If Dinoco only actually used 17,000 square feet of space during the year, what was their cost of unused capacity? (round to the nearest dollar)
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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