RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000

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RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine-hours would be used.

(a) Compute the predetermined indirect cost application rate using machine hours as the burden vehicle.

(b) Determine the total cost of production for a product with direct material costs of $1 million, direct labor costs of $600,000, and 200 machine-hours.

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Engineering Economics Analysis

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Mar 01, 2010 02:38 AM

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RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000

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