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Bluefield Corporation has two product lines, A and B. Bluefleld has identified the following information about its overhead and potential cost drivers: Required: 1. Suppose
Bluefield Corporation has two product lines, A and B. Bluefleld has identified the following information about its overhead and potential cost drivers: Required: 1. Suppose Bluefield Corporation 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 79 percent of the labor hours and Product B requires 21 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 requires 16,500 machine hours and Product B requires 30,500
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