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ASM Media manufactures DVDs and CDs in separate divisions utilizing one plant location. The following data have been prepared for review. Fixed operation costs $450,000
ASM Media manufactures DVDs and CDs in separate divisions utilizing one plant location. The following data have been prepared for review.
Fixed operation costs
$450,000
Practical capacity
1,250 hours
Budgeted usage:
DVD Division
1,000 hours
CD Division
175 hours
Budgeted variable cost per hour
$600 per hour
What is the total cost per hour of use for the DVD Division assuming budgeted usage is the allocation base and a single-rate method is used?
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