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Phillip believes his company's overhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period,
Phillip believes his company's overhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period, the company produced 4,300 units of Product A requiring a total of 460 machine hours and 3,300 units of Product B requiring a total of 115 machine hours. What allocation rate should be used if the company incurs overhead costs of $21,275? Multiple Choice $2.80 per unit $37 per unit $2.80 per machine hour O $37 per machine hour
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