Charleston Company has two departments (Processing and Packaging) and uses a job-order costing system. Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for July:
Processing
Packaging
Machine hours
2,500
1,000
Direct labor cost
$44,500
$23,000
Applied overhead
$55,000
$51,750
Refer to Charleston Company. What is the overhead application rate per machine hour for Processing?
Please show calclations!
Answers: 1
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