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Marshfield Mowing manufactures lawn mowers and lawn edgers and allocates overhead based on direct labor hours. The production process is set up in three departments:
Marshfield Mowing manufactures lawn mowers and lawn edgers and allocates overhead based on direct labor hours. The production process is set up in three departments: Cutting, Fabrication, and Calibration. The following is information regarding the direct labor used to produce one unit of each lawn product: Factory overhead is budgeted for the year as follows: Marshfield Mowing is planning to produce 40,000 mowers and 15,000 edgers during the year. a) Determine the total number of direct labor hours that will be needed by each department. a. Cutting b. Fabrication c. Calibration b) Determine the factory overhead rate by department using the multiple production department factory overhead rate method. Round your answers to two decimal places, if necessary. a. Cutting b. Fabrication c. Calibration c) Determine the amount of factory overhead to be allocated to each unit of lawn mowers and lawn edgers. Round your answers to two decimal places, if necessary. a. Lawn mowers; per unit: b. Lawn edgers; per unit: d) Determine the amount of total factory overhead to be allocated to the lawn mowers and lawn edgers
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