Question: Please help me solve the following question with steps on how to do it. I already have the answers, I just need someone to explain
Please help me solve the following question with steps on how to do it. I already have the answers, I just need someone to explain in clear steps on how to do this problem.
Employees of DTI, Inc. worked 1,600 direct labor hours in January and 1,000 direct labor hours in February. DTI expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of Workers Compensation insurance cost for the year. The cash payment for this cost will be paid in April. How much insurance premium should be allocated to products made in January and February?
ANS: 2,000;
1250
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