Management of The Mars Company has determined that its manufacturing overhead costs should be allocated...
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Management of The Mars Company has determined that its manufacturing overhead costs should be allocated to the products it manufactures based on a predetermined overhead allocation rate per direct labor hour. During the current year. Mars estimates that it will use 10,000 direct labor hours to produce 10,000 units of Product A; and 15,000 direct labor hours to produce 10,000 units of Product B. During the current year, Mars estimates that it will incur $1,000,000 in manufacturing overhead costs. What is Mars' predetermined overhead allocation rate per direct labor hour for the current year? $100 $40 $50 Unable to determine from this information During its first year of operations, The Smith Company paid $75,000 for direct materials and $225,000 in wage for production workers. Rent payments and utility costs for its manufacturing facilities and depreciation on manufacturing equipment totaled $50,000. General, selling, and administrative expenses totaled $125,000. Smith calculated its product costs per unit to be $10. How many units were produced during Smith's first year of operations? None of these 30.000 units 35.000 units 47.500 units
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