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Dawg Town Produces Dog Tags and Bowls with the Name

Question 57

Multiple Choice

Dawg Town produces dog tags and bowls with the name of your dog permanently etched into a stainless steel label.Indirect etching costs are allocated to tags and bowls based on the amount of time spent on the laser etching machine.The company has budgeted etching costs of $4,224 per month and expects to spend 4,800 hours on the etching labels each month.Each dog tag uses 24 minutes and each bowl uses 6 minutes of laser etching time.How much of the etching costs will be allocated to each dog tag?


A) $0.88
B) $0.35
C) $8.12
D) $21.12
E) None of the answer choices is correct.

Correct Answer:

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