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I am having trouble with part C. Thanks for the help! Patricia Corporation manufactures a variety of skin and beauty products, including its bestselling product,
I am having trouble with part C. Thanks for the help!
Patricia Corporation manufactures a variety of skin and beauty products, including its bestselling product, a hydrating lotion. In addition to tracking direct costs for all of its products, Patricia allocates MOH costs by using one plant-wide MOH rate based on DL costs. Total MOH costs are budgeted to be $1,515,000, while total DL costs are estimated at $500,000. After discussions with her peers, the controller at Patricia decides to break down the MOH costs into key activities, as shown below. Perhaps if she allocates the company's MOH costs using more detailed rates and cost drivers, she will have more accurate cost information with which to make better future decisions. (a) Your answer is correct. Calculate Patricia's budgeted MOH rate using one plant-wide pool based on DL cost. (Round answer to 2 decimal places, e.g. 5,125. Allocate MOH costs to Patricia's lotion product using the plant-wide rate, recognizing the actual DL cost for this product was $60,000Step by Step Solution
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