Determining machining costs by activity-based costing

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Reference no: EM1319131

Hagar Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour. Machining costs are driven by machine hours. If computed based on direct labour hours, the overhead rate for machining costs would be $30 per direct labour hour. The company produces two products, Cape and Chap. Cape requires 60,000 machine hours and 20,000 direct labour hours, while Chap requires 40,000 machine hours and 30,000 direct labour hours. Using activity-based costing, machining costs assigned to each product is

Reference no: EM1319131

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