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C The president says to choose the allocation base that results in the highest income. Is this an appropriate basis for choosing an allocation
C The president says to choose the allocation base that results in the highest income. Is this an appropriate basis for choosing an allocation base? 6-44. Two-Stage Allocation and Product Costing (LO 6-5) Mets Products produces baseball caps and T-shirts. Most of the production is done by ma- chine. Data on operations and costs for October follow: Baseball Caps T-Shirts Total Units produced..... 10,000 5,000 15,000 Machine-hours used.. 1,000 800 1,800 Direct labor-hours. 200 120 320 Direct materials costs. $12,000 $8,000 $20,000 Direct labor costs. $ 4,000 $2,400 $ 6,400 Manufacturing overhead costs. $33,300 Management asks the firm's cost accountant to compute product costs. The accountant first assigns overhead costs to two pools: overhead related to direct materials and overhead
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