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Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 460,000 units are expected to be produced
Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 460,000 units are expected to be produced taking 0.95 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? |
Estimated: | Department 1 | Department 2 |
Manufacturing overhead costs | $2,542,000 | $918,000 |
Direct labor hours | 174,000 DLH | 116,000 DLH |
Machine hours | 30,600 MH | 8,600 MH |
$62.17 per unit
$11.33 per unit
$14.61 per unit
$7.53 per unit
$11.93 per unit
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