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Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 400,000 units are expected to be produced
Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 400,000 units are expected to be produced taking .90 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 | $2,530,000 | $900,000 |
Direct labor hours | 168,000 DLH | 110,000 DLH |
Machine hours | 30,000 MH | 8,000 MH |
$12.34 per unit
$63.95 per unit
$7.32 per unit
$11.11 per unit
$15.06 per unit
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