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Lopez Manufacturing prices its products at full cost plus 40 percent. The company operates two support departments and two producing departments. Budgeted costs and normal
Lopez Manufacturing prices its products at full cost plus 40 percent. The company operates two support departments and two producing departments. Budgeted costs and normal activity levels are as follows: Support Department A's costs are allocated based on square feet, and Support Department B's costs are allocated based on number of employees. If the direct method of allocation is used, how much overhead would go to Dept. C? Refer to Lopez. If the sequential method of allocation is used, and service departments are ranked by cost, how much overhead will go to department C
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