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Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and ...
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Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and ...
Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000. Machining works 4,000 hours a year, 500 inspections occur each year, and 1,000 packing order occur each year. Information on the company's two products are as follows:
Alpha
Omega
Machining hours
1,000
3,000
Inspections
100
400
Packing orders
350
650
Direct labor hours
1,700
1,800
How much overhead is allocated to Alpha using a single overhead rate (based on direct labor hours) and assuming ABC, respectively?
▸ $340,000 and $360,000
▸ $360,000 and $175,000
▸ $340,000 and $175,000
▸ $360,000 and $525,000
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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$340,000 and $175,000
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