Question
The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 1,200,000 $ 2,700,000 Direct
The following data relates to Spurrier Company's estimated amounts for next year.
| Estimated: | Department 1 | Department 2 | ||||
| Manufacturing overhead costs | $ | 1,200,000 | $ | 2,700,000 | ||
| Direct labor hours | 540,000 | DLH | 900,000 | DLH | ||
| Machine hours | 100,000 | MH | 24,000 | MH | ||
Overhead for Department 1 is allocated based on Machine Hours and Department 2 based on Direct Labor Hours
How much overhead will be assigned to a product that requires 5 Machine Hours in Department 1 and 2 Direct Labor Hours in Department 2? (rounded to zero decimal places)
DON'T USE COMMA SEPARATORS
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American Public School Finance
Authors: William Owings, Leslie Kaplan
2nd Edition
1111838046, 978-1111838041
