Electro Corp Sells a Refrigerator and a Freezer as a Single

question 20

Multiple Choice

Electro Corp sells a refrigerator and a freezer as a single package for $1130. Other data are in the chart below.

Using the stand-alone method with selling price as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)

• A) $565.00
• B) $416.32
• C) $713.68
• D) $840.00

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Definitions:

Customized Products

Goods that are tailored or adapted to meet specific customer demands or requirements, differing from standard off-the-shelf items.

Direct Labor

Direct labor refers to the wages paid to employees who are directly involved in the production of goods or the provision of services.

Overhead

All indirect costs related to the production of goods or services, including utilities, rent, and salaries for support staff, not directly traceable to a product.

Conversion Cost

The combination of labor costs and overhead expenses associated with transforming raw materials into finished goods.