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6 Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations
6 Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: 10 points Skipped Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Plastic Leather Total $ 560,000 260,000 140,000 $ 580,000 340,000 120,000 $ 1,140,000 600,000 260,000 210,000 265,200 eBook References Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. Required: a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) % of direct-materials cost % of direct-labor cost
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