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The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor
The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent, utilities, and depreciation allocated to Dept. 1 using activity-based costing. Operating Dept. 1 Operating Dept. 2 Totals Direct Labor Hours 980 2,100 3,080 Machine Hours 9,200 6,000 15,200 Factory overhead costs Rent and utilities Indirect labor Depreciation - Equipment Total factory overhead $21,700 17,300 14,000 $53,000 Multiple Choice 0 $14,092. 0 $21,608. $21,608. 0 $5,505. 0 $11,795. 0 $13,134 $13,134
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