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Business, 16.12.2019 14:31 michaelbromley9759

Toyco inc. is considering a change to activity-based product costing. the company produces two products, helicopters and airplanes, in a single production department. the production department is estimated to require 2,000 direct labor hours. the total indirect labor is budgeted to be $200,000. time records from indirect labor employees revealed that they spent 30% of their time setting up production runs and 70% of their time supporting actual production. the following information about helicopters and airplanes was determined from the corporate records: number of setups direct labor hours units helicopters 1,200 1,000 40,000 airplanes 2,800 1,000 40,000 total 4,000 2,000 80,000 1. determine the indirect labor cost per unit allocated to helicopters and airplanes under a single plantwide factory overhead rate system using the direct labor hours as the allocation base.

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