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Doe Company has two departments: Machining and Assembly. The following estimates are for the coming year: Machining Assembly Direct labor hours 50,000 40,000 Machine hours
Doe Company has two departments: Machining and Assembly. The following estimates are for the coming year:
Machining | Assembly | |
Direct labor hours | 50,000 | 40,000 |
Machine hours | 150,000 | 150,000 |
Manufacturing overhead costs | $750,000 | $1,050,000 |
A single predetermined manufacturing cost driver rate based on total plant direct labor hours is:
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