How much overhead will be assigned to each unit produced


Lake Prairie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 120,000 units are expected to be produced taking 0.80 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated: Department 1 Department 2
  Manufacturing overhead costs $5,386,000 $2,457,000
  Direct hours     500,000 DLH 550,000 DLH
  Machine hours 340,000 MH     280,000 MH

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Accounting Basics: How much overhead will be assigned to each unit produced
Reference No:- TGS0693514

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