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Acme Company manufactures two products, Gadgets and Widgets, and has two production departments, Y and Z. Acme uses a plantwide rate based on machine hours

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Acme Company manufactures two products, Gadgets and Widgets, and has two production departments, Y and Z. Acme uses a plantwide rate based on machine hours (MHs) to apply overhead. For the current year, Acme estimates total manufacturing overhead costs of $633,600 and total MHs of 17.600. It takes 22MHs (both departments) to produce either one Gadget or one Widget. Acme plans to switch to departmental rates based on direct labor hours (DLHs) for Department Z and MHs for Departinent Y. Here are estimated overhead data for the current year: How much lower will the estimated per-unit manufacturing cost of a Gadget be if it is computed using departmental overhead rotes rather than a plantwide overhead rate? 588 594 $106 5128 None of the above Acme Company manufactures two products, Gadgets and Widgets, and has two production departments, Y and Z. Acme uses a plantwide rate based on machine hours (MHs) to apply overhead. For the current year, Acme estimates total manufacturing overhead costs of $633,600 and total MHs of 17.600. It takes 22MHs (both departments) to produce either one Gadget or one Widget. Acme plans to switch to departmental rates based on direct labor hours (DLHs) for Department Z and MHs for Departinent Y. Here are estimated overhead data for the current year: How much lower will the estimated per-unit manufacturing cost of a Gadget be if it is computed using departmental overhead rotes rather than a plantwide overhead rate? 588 594 $106 5128 None of the above

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