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Item6

Production workers for Adams Manufacturing Company provided 5,000 hours of labor in January and 2,100 hours in February. The company, whose operation is labor intensive, expects to use 48,000 hours of labor during the year. Adams paid a $100,800 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months.

Required

Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February?

Note: Do not round intermediate calculations.

Production workers for Adams Manufacturing Company provided 5,000 hours of labor in January and 2,100 hours in February. The company, whose operation is labor intensive, expects to use 48,000 hours of labor during the year. Adams paid a $100,800 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? Note: Do not round intermediate calculations