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Cutting Finishing Quality Control Maintainance Overhead: Maintainance Dept (39970*27/54) =19985 (39970*21/54) =15544 (39970*6/54) =4441 Quality control (24900+4441=29341) (29341*5400/7500) =21126 8215 Direct Material 69300 144900 Direct
Cutting | Finishing | Quality Control | Maintainance | |
Overhead: | ||||
Maintainance Dept | (39970*27/54) =19985 | (39970*21/54) =15544 | (39970*6/54) =4441 | |
Quality control (24900+4441=29341) | (29341*5400/7500) =21126 | 8215 | ||
Direct Material | 69300 | 144900 | ||
Direct Labour | 37800 | 41400 | ||
Total | 148211 | 210059 | ||
(2) Finishing dept cost per unit=210059/10300=20.39
My question is: why do we divide by 54?
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