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Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terrific does large custom orders. Terrific budgets to produce 1 0
Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terrific does large custom orders. Terrific budgets to produce basic trophies and
deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two
cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed
in batches of units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of units per batch.
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Requirement Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. Dont
forget to include direct material and direct manufacturing labor cost in your unit cost calculation.
Start by calculating the total direct costs for the basic and deluxe trophies departments.
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