Examlex

Solved

A Local Post Office Sorts Letters by Postal Code  Direct labour $12,000 Overhead 8,000 Total $20,000\begin{array}{lr}\text { Direct labour } & \$ 12,000 \\\text { Overhead } & 8,000 \\\text { Total } & \$ 20,000 \\\end{array}

question 132

Essay

A local post office sorts letters by postal code.During the month of July,200,000 letters were sorted.The cost of sorting includes the following:
 Direct labour $12,000 Overhead 8,000 Total $20,000\begin{array}{lr}\text { Direct labour } & \$ 12,000 \\\text { Overhead } & 8,000 \\\text { Total } & \$ 20,000 \\\end{array}
a.Explain why process costing is appropriate for this operation.
b.Calculate the cost per letter for this operation.
c.There are no direct materials used for the sorting operation.Is the absence of direct materials typical of services? If not,provide examples of services that use direct materials.


Definitions:

Traditional Methods

Conventional or long-established techniques or practices used in a particular field or profession.

Inference

The process of drawing logical conclusions from premises or evidence.

Bootstrap Confidence Interval

A statistical method for estimating the confidence interval of a parameter by resampling the original data with replacement.

Bootstrap Distribution

The distribution of a large number of bootstrap samples' statistics, used for estimating the shape of the true distribution of a statistic.

Related Questions