Antonoverhead costs are driven (affected) by the number of machine hours because the production process is heavily
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Question:
Antonoverhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period, the company produced 3000 units of product a requiring a total of 100 machine hours and 2000 units of product be requiring a total of 25 machine hours. What allocation rate should be used if the company incurs overhead cost of $10,000?
-$2 per unit
-$2 per machine
-$80 per unit
-$80 per machine hour
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