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Please give me proper step by step explanation. 7. You work for the Cranberries Company, which uses normal costing. Overhead is charged to units on
Please give me proper step by step explanation.
7. You work for the Cranberries Company, which uses normal costing. Overhead is charged to units on the basis of 80% of direct labor cost. You are paid $10 per hour for regular hours and $15 per hour for overtime hours (above 40 hours each week). It takes you 1 hour to produce a unit. Assume that each unit has $5 of direct materials. Compute the total cost of producing one unit during regular hours. 8. Refer to question 7. Compute the total cost of producing one unit during overtime if the overtime is caused by a generic problem (all units cause the overtime). 9. Again refer to question 7. Compute the total cost of producing one unit during overtime if the overtime is caused by a specific problem (this unit caused the overtime)
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