Question: Assume that Bene Petit uses a volume - based cost system that applies indirect costs ( i . e . , overhead ) based on

Assume that Bene Petit uses a volume-based cost system that applies indirect costs (i.e., overhead) based on the number of customer meals delivered. At the beginning of the year, accountants estimated indirect cost at $24,000 and expected to deliver 32,000 customer meals. The company actually delivered 25,000 customer meals and incurred indirect cost of $25,000.
If Bene Petit recorded $125,000 in Sales Revenue and reported an unadjusted Cost of Good Sold of $75,000(before the adjustment for over or underapplied overhead), how much is Adjusted Gross Profit?

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