Making one hit of the company


For 2010, omaha mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm's 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each month. Making one hit of the company's product requires 1.5 direct labor hours. Determine the total overhead to be applied per unit of product in 2010.

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Accounting Basics: Making one hit of the company
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