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Blossom Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Jason
Blossom Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Jason Allen, has developed the following information:
tableCar,TruckEstimated wheels produced,Directlabour hours per wheel,
Total estimated overhead costs for the two product lines are $
Your answer is incorrect.
Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs.
Car wheels
$
Truck wheels $
Total overhead $
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