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Author Question: Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and ... (Read 66 times)

stananza

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Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000. Machining works 4,000 hours a year, 500 inspections occur each year, and 1,000 packing order occur each year. Information on the company's two products are as follows:

AlphaOmega
Machining hours1,0003,000
Inspections100400
Packing orders350650
Direct labor hours1,7001,800

How much overhead is allocated to Omega using a single overhead rate (based on direct labor hours) and using ABC, respectively?
◦ $340,000 and $360,000
◦ $340,000 and $175,000
◦ $360,000 and $525,000
◦ $360,000 and $175,000


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Marked as best answer by stananza on Feb 5, 2023

leilani49

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stananza

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


sailorcrescent

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Reply 3 on: Yesterday
Excellent

 

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