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What is ABC Overhead Calculation Problem # 3 Direct materials 325,400 Materials handling 35,145 Assembly 58,020 Setup 13,400 Product Testing 3,500 Overhead 15,860 Output 41,500

What is ABC Overhead Calculation

Problem # 3
Direct materials 325,400
Materials handling 35,145
Assembly 58,020
Setup 13,400
Product Testing 3,500
Overhead 15,860
Output 41,500 units
Direct Labor Hours 3,600
Setups 420
Product tests 70,000
Each unit requires two machine hours
Materials handling based on direct material cost
Product testing based on number of tests
Overhead based on machine hours
Assembly based on direct labor hours
Setups based on the number of setups
Job 153:
Completed 1,850 units
Direct Materials 12,400
Direct labor hours 83
Setups 6
Tests 2,584

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