Question: A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is considered a separate
A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is considered a separate cost center for indirect cost allocation. The remaining seven are grouped as one center, CC190. Machine operating hours are used as the allocation basis for all machines. A total of $250,000 is allocated to the department for next year. Use the data collected this year to determine the indirect cost rate for each center.
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