Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,000 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Almond Treats cost data Costs Direct material Direct labor Manufacturing overhead Amounts $13,000 5,000 7,000 The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. What are the total relevant costs?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 7EA: Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has...
icon
Related questions
Question
Almond Treats manufactures various types of cereals that
feature almonds. Acme Cereal Company has approached
Almond Treats with a proposal to sell the company its top
selling cereal at a price of $22,000 for 20,000 pounds. The
costs shown are associated with production of 20,000
pounds of almond cereal:
Almond Treats cost data
Costs
Direct material
Direct labor
Manufacturing overhead
Amounts
$13,000
5.000
7,000
The manufacturing overhead consists of $2,000 of variable
costs with the balance being allocated to fixed costs. What
are the total relevant costs?
Transcribed Image Text:Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $22,000 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal: Almond Treats cost data Costs Direct material Direct labor Manufacturing overhead Amounts $13,000 5.000 7,000 The manufacturing overhead consists of $2,000 of variable costs with the balance being allocated to fixed costs. What are the total relevant costs?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College