Problem 4-20A (Static) Cost allocation in a manufacturing company LO 4-1, 4-2, 4-3 Camp Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $80,000 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,600 tents in January and 1,200 tents in February. For the entire year, the company expects to produce 20,000 tents. Required As the number of tents inspected increases, does the amount of fixed cost increase, decrease, or stay the same? As the number of tents inspected increases, does the fixed cost per unit increase, decrease, or stay the same? If the cost objective is to determine the cost per tent, is the experts salary a direct or an indirect cost? How much of the experts salary should be allocated to tents produced in January and February?

As the number of tents inspected increases, the amount of fixed cost As the number of tents inspected increases, the fixed cost per unit f the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? How much of the expert's salary should be allocated to tents produced in January and February