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I got through most of this successfully; however, I am not sure how to figure out the factory overhead that should be allocated to each
I got through most of this successfully; however, I am not sure how to figure out the factory overhead that should be allocated to each unit of product. Please assist and thank you.
Klamath Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Budgeted Costs Activity Base Stamping $200,000 Machine hours Assembly 400,000 Labor hours Setup 30,000 Number of setups Activity Base Saws Drills Total Machine hours 4,000 6,000 10,000 Labor hours 7,000 13,000 20,000 Number of setups 3 12 15 Units produced 500 600 a. Determine the activity late for each activity. Stamping $_ V, per machine hour Assembly $_ \\I' per labor hour Setup $_ J per setup b. Determine the factory overhead to be allocated to each unit of product. Round your answers to two decimal places, if necessary. Saws K per unit Drills X per unitStep by Step Solution
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