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The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, which is representative, manufacturing overhead
The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, which is representative, manufacturing overhead totaled $1,969,500 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows: Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. How much overhead will be assigned to each product if these three cost drivers are used to allocate 0 total cost per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places. Complete this question by entering your answers in the tabs below. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places
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