How much of the utility costs will be allocated


Bristle Company produces brooms. Utility costs are allocated to products based on a percentage of material costs. Utility costs of $15,000 per month are budgeted and the store anticipates spending $30,000 in materials. By the end of the month, it was determined that actual utility costs were $14,500. If the company spends $6.50 per broom for materials, how much of the utility costs will be allocated to each broom?

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Accounting Basics: How much of the utility costs will be allocated
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