Steven Garcia had been allocating MOH costs to his products using a single plant-wide rate...
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Steven Garcia had been allocating MOH costs to his products using a single plant-wide rate of $15.00 per DL hour. His accountants were now suggesting the use of the following activity-based rates. $19 per production run $7 per direct labor hour $6 per inspection hour If the most recent job required 60 production runs, 450DL hours, and 40 inspection hours, specify how much MOH cost would have been allocated under the previous plant-wide rate, as well as what would be allocated using the suggested ABC rates. Allocation using plant-wide rate $ Allocation using ABC rates $
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Steven Garcia had been allocating MOH costs to his products using a single plant-wide rate of $15.00 per DL hour. His accountants were now suggesting the use of the following activity-based rates. $19 per production run $7 per direct labor hour $6 per inspection hour If the most recent job required 60 production runs, 450DL hours, and 40 inspection hours, specify how much MOH cost would have been allocated under the previous plant-wide rate, as well as what would be allocated using the suggested ABC rates. Allocation using plant-wide rate $ Allocation using ABC rates $ 