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Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: $62,400 Total overhead
Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: $62,400 Total overhead Cost drivers Number of labor hours Number of machine hours 1,700 39,000 Required: 1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 66 percent of the labor hours and Product B requires 34 percent. 2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 16,700 machine hours and Product B consumes 22,300
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