A company incurs $1230000 of overhead each year in three departments, Processing, Packaging, and Testing....
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Accounting
A company incurs $1230000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 190000 packaging transactions, and 1800 tests per year in producing 401000 drums of oil and 605000 drums of sludge. The following data are available: Department Use of Cost Driver Processing 800 Cost $498000 Packaging 190000 498000 Testing 1800 234000 Production information for sludge is as follows: Department Use of Cost Driver Processing 500 Packaging 95000 Testing 600 Calculate the amount of overhead assigned to sludge
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