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Question 1. Question 2. Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $ 2680000; machining,
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Question 2.
Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $ 2680000; machining, $ 5300000; and inspecting, $ 2010000. Information on the two products is: Board 12 Case 165 Direct labor hours 15000 25000 Machine setups 600 400 Machine hours 24000 26000 Inspections 800 700 Overhead applied to Case 165 using traditional costing using direct labor hours is $ 6243750. O $ 4766000. $ 5138250. O $ 3996000. Sunland Company's overhead rate for machine setups is $ 119 per setup. A total of 102 setups are estimated for the period. At year- end, it was determined that Products A and B have 56 and 42 setups, respectively. How much is the overhead cost assigned to each product? O Product A$ 11662, Product B $ 4284 Product A$ 5712, Product B $ 5712 Not enough information to determine the answer O Product A$ 6664, Product B $ 4998Step by Step Solution
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