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Zhang Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct
Zhang Manufacturing Company has two departments, machining and finishing. For a given period, the following costs were incurred by the company as a whole: direct material, $430,000; direct labor, $165,000; and indirect production, $80,000. The grand total was $675,000 The machining department incurred 30% of the direct-material costs, but only 10% of the direct-labor costs. Indirect production costs amounted to $38,000 in the machining department and $42,000 in finishing. Three products were produced using the following proportions of direct material and direct labor in the two departments. (Click the icon to view the data for the three products.) As is commonplace, indirect production costs incurred by each department were allocated to products in proportion to the direct-labor costs of products within the departments Read the requirements Requirement 1. Compute the total costs incurred by the machining department and added by the finishing department Machining Finishing Total Data Table Direct materials Direct labor Indirect production Product Direct Material Direct Labor Total 40% 20% Alpha Beta 50% 10% 70% Gamma 10% 100% 100% Total for the machining department 10% 50% Alpha Beta 30% 40% 10% Gamma 60% 100% 100% Total added by finishing department
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