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