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The oswell Company manufactures products in to the apartment. Mixing ans packaging. The company was allocating manufacturing overhead using a single plant wide range of
The oswell Company manufactures products in to the apartment. Mixing ans packaging. The company was allocating manufacturing overhead using a single plant wide range of $2.30 with direct labor hours as the allocation base. The company has refined as allocation system by separating manufacturing overhead costs into to cost pools one for each department. The estimated cost for the mixing department $470,000 will be allocated based on direct labor hours and the estimated direct labor hours for the year or 200,000. The estimated cost for the packaging department $167,750 Will be allocated based on machine hours in the estimated machine hours for the year are 55000. In October the company incurred 36,000 direct labor hours in the mixing department and 13,000 machine hours in the packaging department
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