A company has two inspectors, each earning a salary of $75,000.One inspector works exclusively on inspecting parts received from outside suppliers, while the other spends 30% of her time inspecting parts and 70% of her time inspecting final products.How much labor cost should be assigned to the activity, inspecting parts?
A) $100,000
B) $95,000
C) $75,000
D) $96,275
E) $97,500

Question

Quizplus · Accepted Answer

Cost assigned: $75,000 + (30% × $75,000) = $97,500

A Company Has Two Inspectors, Each Earning a Salary of $75,000.One