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Sunland Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate
Sunland Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced models require increasing degrees of labour, depending on the shaping and finishing processes. Sunland applies all indirect costs to production using a single predetermined overhead OH rate based on direct labour hours DLH
Management estimates that DLH will be used in the upcoming year, at a rate of $ per hour.
Assume that the following activity took place in the first month of the new year:
tableBeginner,Intermediate,AdvancedNumber of units produced,Direct materials costs,$$$
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