solution for bonus - Using this overhead rate, the unit...

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a. The company expects to work 60,000 direct labor-hours during the current year, computed as follows: Product K-7: 40,000 units × 1 hour = 40,000 hours Product L-15: 10,000 units × 2 hours = 20,000 hours Total direct labor-hours = 60,000 hours Using these hours as a base, the predetermined overhead using direct labor hours would be: Estimated overhead cost, $510,000 ÷ Estimated direct labor-hours, 60,000 = $8.50/DLH
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Unformatted text preview: Using this overhead rate, the unit product cost of each product would be: b. The overhead rates for each activity cost pool are as follows: The overhead cost charged to each product is: Overhead cost per unit: Product K-7: $214,500 40,000 units = $5.3625/unit. Product L-15: $295,500 10,000 units = $29.5500/unit. Using activity based costing, the unit product cost of each product would be:...
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This note was uploaded on 11/09/2010 for the course ACCT 301 taught by Professor Lynn during the Spring '10 term at University of Baltimore.

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solution for bonus - Using this overhead rate, the unit...

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