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A-haha produces funny printed T-shirts. Every month it expects to produce and sell 5,000 units. It has three production departments: sewing, printing, and packaging. The
A-haha produces funny printed T-shirts. Every month it expects to produce and sell 5,000 units. It has three production departments: sewing, printing, and packaging. The table shows the allocation base for each department, as well as the budgeted and actual data for September:
Sewing | Printing | Packaging | |
Departmental cost driver | Direct labour hours | Machine hours | Units produced |
Total budgeted department overhead ($) | $63,000 | $28,000 | $32,000 |
Budgeted direct labour hours | 7,000 | 1,000 | 3,000 |
Budgeted machine hours | 4,000 | 6,000 | 2,000 |
Actual direct labour hours | 7,700 | 1,300 | 3,300 |
Actual machine hours | 3,800 | 6,300 | 1,900 |
Assuming the company's actual production for the month was 5,044 units, use departmental overhead rates to calculate total overhead applied for May. Round your answer to the nearest whole dollar.
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