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Dragon Fire Hot Sauce makes two types of hotsaucesmeekand mild. Budgeted information for the two flavors appears below: Meek Mild Sales $600,000 $400,000 Direct materials
Dragon Fire Hot Sauce makes two types of hotsaucesmeekand mild. Budgeted information for the two flavors appears below:
The company estimates it will incur $250,000 in overhead costs for the period. Dragon Fire allocates overhead cost to products based on the labor cost incurred. How much overhead is assigned to Meek?
| Meek | Mild |
| Sales | $600,000 | $400,000 |
| Direct materials | $100,000 | $120,000 |
| Direct labor cost | $108,000 | $180,000 |
| Labor hourly cost | $12.00 | $12.00 |
| A. | $113,636 |
| B. | $150,000 |
| C. | $20,833 |
| D. | $93,750 |
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Lawrence Tomassini
5th Edition
0077282078, 9780077282073
