Manufacturing overhead is allocated to products based on the number of machine hours required. In a year
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Question:
Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 40,000 machine hours and 60,000 direct labor hours were anticipated, indirect costs were budgeted at $252,000. If production of wagons requires 9,000 machine hours and 10,800 direct labor hours, how much manufacturing overhead will be allocated to wagons?
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