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Question5) Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and allocated using direct labor-hours in the Assembly Department
Question5) Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and allocated using direct labor-hours in the Assembly Department for one of the clients. At the beginning of 2019, the following estimates were provided: Direct labor-hours Machine-hours Machining 10,000 dlh Assembly 80,000 dlh 200,000 mh 6,000 mh $100,000 $820,000 $240,000 $460,000 Direct labor cost Manufacturing overhead costs the company show the following data for Manufacturing unit 20: Direct labor-hours Machine-hours Direct material cost Direct labor cost Required: Machining Assembly 10 dlh 220 dlh 160 mh 40 mh $2,780 $1,590 $500 $1,000 a. Compute the manufacturing overhead allocation rate for each department. b. Compute the total cost of Manufacturing unit 20
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