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Question
Merchant Company purchased property for a building site. The costs associated with the property were:Purchase price"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 $185,000
Real estate commissions 15,000
Legal fees 700
Expenses of clearing the land 2,000
Expenses to remove old building 4,000
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A.$187,700 to Land; $19,000 to Building.
B.$200,700 to Land; $6,000 to Building.
C.$200,000 to Land; $6,700 to Building.
D.$185,000 to Land; $21,700 to Building.
E.$206,700 to Land; $0 to Building.
Answer
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Direct labor X X
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Variable manufacturing overhead
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Direct materials
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Match the following
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Q:
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What is the Red and White's contribution margin for this month if 980 units were sold?
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Given the Cool Pools Company data, what is net income using absorption costing?
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