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ACC - Creative Crates Co. produces wooden crates

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Question;Creative Crates Co. produces wooden crates used for shipping products by ocean liner. In 2014, Creative incurred the following costs.Wood used in crate production $56,610Nails (considered insignificant and a variable expense) $520Direct labor $42,020Utilities for the plant: $3,000 each month, plus $0.48 for each kilowatt-hour used each month Rent expense for the plant for the year $25,120Assume Creative used an average 800 kilowatt-hours each month over the past year.(a) What is Creative?s total manufacturing cost if it uses a variable costing approach?Total manufacturing costs (b) What is Creative?s total manufacturing cost if it uses an absorption costing approach?Total manufacturing costs

 

Paper#41681 | Written in 18-Jul-2015

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