The following were among Gage Co.'s 2014 costs:
Normal spoilage -------------------------------------$5,000
Freight out---------------------------------------------10,000
Excess of actual manufacturing costs over
Standard costs --------------------------------------20,000
Standard manufacturing costs 100,000
Actual prime manufacturing costs--------------80,000
Gage's 2014 actual manufacturing overhead was
a. $40,000
b. $45,000
c. $55,000
d. $120,000
Answer: A
CPA Exam
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