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Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $672,900 with 316,100 estimated direct labor hours. Deluxe widget production requires 2 direct labor hours for each unit, and regular widget production requires 2 direct labor hours for each unit. Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Challenger Factory will allocate to regular widget production if budgeted production of regular widgets for the period is 75,000 units and actual production of regular widgets for the period is 124,600 units would be.
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Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total fact...
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