Question
Consider a company where overhead is applied to the products using two cost drivers DL hours, and machine hours. The cost accountant of the
Consider a company where overhead is applied to the products using two cost drivers DL hours, and machine hours. The cost accountant of the company investigated overhead costs and found that 60% of the total OH can be represented by the machine hours cost driver and 40 % by DL hours. Production plan for this year states that 2,000 DL hours and 3,000 machine hours will be spent. Total overhead cost is also planned as 150,000 TL. Find the overhead application rates for this year.
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