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How much of the expert salary should be allocated to tents

    Assignment Instructions

    Assignment ID: FG133136320

    Question – Rundle Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $88,400 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,500 tents in January and 1,210 tents in February. For the entire year, the company expects to produce 13,000 tents.

    Required –

    a. If the cost objective is to determine the cost per tent, is the expert’s salary a direct or an indirect cost?

    b. How much of the expert’s salary should be allocated to tents produced in January and February?

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