Question

Terrel Gifts produces logo platters and cups bearing the name of the city in which the items will be sold to tourists. Indirect logo printing costs are allocated to platters and cups based on the amount of time spent on the logo machine. The company has budgeted logo costs of $4,224 per month and expects to spend 4,800 hours on the printing logos each month. Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine. How much of the logo printing costs will be allocated to each platter?

Answer 1

$0.3528

Explanation:

So, we are given the following data or parameters or information in the question above as:

=> " The company has budgeted logo costs = $4,224 per month."

=> "Time that is being expected to be spent = 4,800 hours on the printing logos each month. "

=> " Each platter uses 24 minutes and each cup spends 6 minutes on the logo machine."

The amount of money the logo printing costs will be allocated to each platter;

Thus, 0.0147 × 24 = 0.3528.

Kindly note that the value; 0.0147 comes from the division of 4800 hours by 60 per each hour