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Units produced...(1)25,500 (2)2,660
Direct labor hours required for production....(1)23,000 (2)19,000
Units per batch....(1)5,000 (2)70
Shipping weight per unit ....(1) .50lbs. (2)4lbs.
The company incurs $1,254,696 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.
How much overhead will be allocated to each product using the traditional direct labor hours allocation base?
What overhead cost per unit will be allocated to each product?
Boss Company's standard cost accounting system recorded this information from its December operations.
Develop quantitative skills necessary to read, interpret and perform the calculations for the accounting reports involved in cost control and profit planning - prepare and present financial statements.
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Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain.
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