Question

10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what amount of cost would be allocated to the start-up business

Answer 1

the cost that allocated to the start up business is $61,600

Step-by-step explanation:

The computation of the amount of the cost that allocated to the start up business is given below:

= Manufacturing facility costing × maintaining the overall cost percentage

= $560,000 × 0.11

= $61,600

Hence, the cost that allocated to the start up business is $61,600

We simply applied the above formula so that the amount could come