(14t)
Auburn, Inc.‘s overhead costs of $700000 consist of machining $400000; inspecting $200000; and packaging $100000. Machining works 4000 hours a year, 500 inspections occur each year, and 1000 packing order occur each year. Information on the company’s two products are as follows:
How much overhead is allocated to Alpha using a single overhead rate (based on direct labor hours) and assuming ABC, respectively?
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