A company manufactures and sells two products A and B. Given the following data on...
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Accounting
A company manufactures and sells two products A and B.
Given the following data on the two products:
Total hours
Product A: 2000 units @ 5 hours 10,000
Product B: 10,000 units @ 4 hours 40,000
50,000
Manufacturing overhead costs total $800,000 each year
1- Assume that the company applies overhead to products on a basis of direct labor hours.
a. Compute the predetermined overhead rate that would be used
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