Western Company allocates $10.00 overhead to products based on the number of machine hours used. The company uses a plantwide overhead rate with machine hours as the allocation base.
Given the amounts below, how many machine hours does the company expect in department 2?
Estimated: Department 1 Department 2
Manufacturing overhead costs $270,000 $170,000
Direct labor hours 10,000 DLH 32,000 DLH
Machine hours 17,000 MH ? MH
a. 98,000 MH
b. 151,700 MH
c. 27,000 MH
d. 90,700 MH
e. 37,000 MH
Answers: 2
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Western Company allocates $10.00 overhead to products based on the number of machine hours used. The...
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