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Calley's Cakes Inc. produces quality specialty cakes. Her cakes move through two departments: Baking and Frosting. The company uses departmental overhead rates to allocate overhead
Calley's Cakes Inc. produces quality specialty cakes. Her cakes move through two departments: Baking and Frosting. The company uses departmental overhead rates to allocate overhead costs. Overheads are allocated based on oven-hours for Baking and direct labour cost for Frosting. Information related to costs for last month is provided below: In addition, the company budgets manufacturing overhead at $49,250 in the Baking department and $55,500 in the Frosting department. equired: 1. Determine the overhead application rate for each department 2. Determine the total cost per unit of the two types of cakes (10-inch and 8-inch glazed)
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