Wooden Swing Sets Which Are Sold Partially Assembled
A company manufactures wooden swing sets which are sold partially assembled. The following costs
were incurred related to the production of 1,400 swings:
a. comparable goods in a select “basket” of other countries.
b. Vieux Carrés goods in France.
c. Vieux Carrés goods in the United States.
d. Vieux Carrés goods on the world market.
Boards (180 feet per swing) $504,000
Nuts, bolts and washers 2,500
Wood stain 1,500
Chain for swings (40 feet per set) 56,000
Plastic swing seats (two per set) 5,600
What is the total amount which should be included in manufacturing overhead for the month?
a. $569,600
b. $65,600
c. $9,600
d. $4,000