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Suppose that a cement factory has a normal production capacity of 80.000 tons. In March,...

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Accounting

Suppose that a cement factory has a normal production capacity of 80.000 tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are the data: (a) Direct material cost 200.000 $, (b) Direct labor cost 800.000 $, (c) Factory overhead 1.000.000 $. As an internal auditor, you have explored that 100% of the direct labor costs and 80% of the factory overhead is fixed. Now, what would be the cost of cement sold when normal absorption costing is used?

  1. 450.000 $
  2. 500.000 $
  3. 550.000 $
  4. 600.000 $

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