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Target Products uses a two-stage allocation method to assign costs to its products. The following information has been provided for March:
Product 1 Product 2 Total
Required: (a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related (b) Compute the predetermined overhead rate for the two pools, using machine hours and direct labor hours as the bases. (c) Compute the total costs of production for each of the two products.
Use the following information and the percent-of-sales method to answer questions. For consistency with the Answer selections provided, please round your forecast percentages to two decimals.)
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