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(Not a repeat question.) Chuck's Guitar makes Traditional acoustic guitars and Concert Quality guitars. Both use essentially the same manufacturing processes: A guitar neck is
(Not a repeat question.) Chuck's Guitar makes Traditional acoustic guitars and Concert Quality guitars. Both use essentially the same manufacturing processes:
A guitar neck is cut to shape from a wooden blank using an automated milling machine and enters the assembly area.
(Not the focus on this problem.)
Plywood is cut in shapes that will ultimately form the figure-8-shaped box. Both guitar types use the same amount of plywood and are cut in the same way in this activity, but the Concert Quality guitar uses much higher quality plywood that is purchased in smaller quantities.
The cut plywood is shaped and glued into the traditional figure-8-shaped box, and the neck is added. The assembled guitar is finish-sanded.
Assembled guitars are moved to another area for finishing.
After assembly processes are complete, the assembly area is set-up (cleaned) for the next batch to start production.
All laborers earn $10 per hour and do not work when guitars are not being made.
The assembly activities typically take the same amount of labor time per guitar for both types of guitar (about one labor hour per guitar.)
Calculate the overhead rate for assembly using direct labor hours:
Group of answer choices
$47.50
$71.25
$570
$475
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