What allocation rate should be used

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Question - Anton overhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period, the company produced 3000 units of product a requiring a total of 100 machine hours and 2000 units of product be requiring a total of 25 machine hours. What allocation rate should be used if the company incurs overhead cost of $10,000?

$2 per unit

$2 per machine

$80 per unit

$80 per machine hour

Reference no: EM132425780

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