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Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 520,000 units are expected to be produced requiring
Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 520,000 units are expected to be produced requiring 2.4 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Manufacturing overhead costs Direct labor hours Machine hours Department 1 $2,960,000 180,000 DLH 36,000 MH Department 2 $3,540,000 122,000 DLH 14,000 MH Multiple Choice $21.52 per unit O $130.00 per unit $25.30 per unit O $312.00 per unit O None of the choices
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