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Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Harry Whipple departmental overhead rates can offer significantlv better
Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Harry Whipple departmental overhead rates can offer significantlv better cost assianments than can a plantwide rate. Mariposa has the fo lowing data for its two departments for the coming year: Department A Department B overnead costs expected) $600.000 $150.000 Normal activity (machine hours) 00 000 50.000 Reguired! Repeat Requirement 3 assuming the expected overhead cost for Department B is $300.000 Product X75 Product Y15 Plantwide: 220% 220 X Would you recommend departmental rates over a plantwide rate
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