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Jefferson Company expects to incur $540,000 in manufacturing overhead costs during the current year. Other budget information follows: Department A Department B Department C Direct
Jefferson Company expects to incur $540,000 in manufacturing overhead costs during the current year. Other budget information follows: Department A Department B Department C Direct labor hours 15,000 5,000 20,000 Machine hours 8,000 10,000 12,000 Assume that each unit manufactured by Department A requires 160 direct labor hours and 85 machine hours. 1. If overhead is allocated based on direct labor hours, how much overhead would be allocated to one unit from Department A? 2. If overhead is allocated based on machine hours, how much overhead would be allocated to one unit from Department A
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