300986 × $2,656,727; $1,722,311; $556,685) 799,638 518,392 167,554 1,485,584 Operating income $ 264,115 $ 74,657 $ (6,273) $ 332,499 aOverhead rate = $1,485,584 ÷ $4,935,723 = 0.300986 per cost of merchandise dollar 2. Selling, general and administration (S,G & A) is comprised of a variety of costs that are unlikely to be consumed uniformly across product lines based on the cost of merchandise. Super Bookstore should consider an activity-based costing system to…
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