Solution-How much overhead cost is expected to be allocated

How much overhead cost is expected to be allocated

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Reference no: EM132106212

Question - Curly Manufacturing is estimating overhead of $600,000 for next year that is allocable to its deluxe and basic product lines. At the beginning of the year, they predicted the following activity levels of various potential cost drivers:

	Deluxe	Basic	Total
Units produced	15,000	45,000	60,000
Machine hours	9,000	21,000	30,000
Material moves	2,000	2,000	4,000
Setups	600	400	1,000

1. How much overhead cost is expected to be allocated to the deluxe product line if machine hours is the chosen cost driver?

2. How much overhead cost is expected to be allocated to the basic product line if setups is the chosen cost driver?

Reference no: EM132106212

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How much overhead cost is expected to be allocated

Reference no: EM132106212

Reference no: EM132106212

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