Smith has allocated additional overhead to product X of $54,160 after switching to ABC. Previously...
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Smith has allocated additional overhead to product X of $54,160 after switching to ABC. Previously overhead was allocated using only direct labor hours of which product X uses 35%. Under ABC, overhead is now allocated using both direct labor hours and machine hours. Overhead costs allocated to the machine pool = $175,000. What is product X's machine usage percentage?
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