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Question
Rain Maker Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 350,000 units are expected to be produced taking .80 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
| Estimated: | Department 1 | Department 2 |
| Manufacturing overhead costs | $2,730,000 | $910,000 |
| Direct labor hours | 168,000 DLH | 112,000 DLH |
| Machine hours | 30,000 MH | 7,000 MH |
A. $13.00 per unit
B. $10.40 per unit
C. $16.25 per unit
D. $6.50 per unit
E. $8.13 per unit
Answer
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Related questions
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Q:
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E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.