Author Question: Monticello Corp manufactures expensive tables. Its varnishing department is fully automated and ... (Read 74 times)

Chelseaamend · **on:** Mar 6, 2021

Monticello Corp manufactures expensive tables. Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly varnished table is very expensive to correct. Inspection hours for the 5800 tables varnished in September totaled 1700 hours by 10 employees. Eight quarts of varnish were used, on average, for each table. The standard amount of varnish per table is nine quarts. The cost of inspection for September was equal to the budgeted amount of $40,100.

The $40,100 represents a(n) ________.
◦ activity cost pool
◦ possible cost allocation base
◦ internal failure cost
◦ work-in-process control

chreslie · **Reply #1 on:** Mar 6, 2021

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