Production Department 1 (PDl) and Production Department 2 (PD2) had factory overhead budgets of $26,000 and $48,000,

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Production Department 1 (PDl) and Production Department 2 (PD2) had factory overhead budgets of $26,000 and $48,000, respectively. Each depart¬ ment w'as budgeted for 5,000 direct labor hours of production activity. Product T required 5 direct la¬ bor hours in PDl and 2 direct labor hours in PD2. What is the factory overhead cost associated with a unit of Product T, assuming that factory o\'erhead is allocated using the multiple production depart¬ ment rate method?

A. $26.00 C. $45.20 B. $40.40 D. $58.40 AppendixLO1

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Financial Accounting

ISBN: 9780324188035

9th Edition

Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess

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