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San Diego State University Operations And Supply Chain Management Assignment Help - Products


Question - Primera Company produces two products and uses a predetermined overhead rate to apply
overhead. Primera currently applies overhead using a plantwide rate based on direct labor
hours. Consideration is being given to the use of departmental overhead rates where overhead
would be applied on the basis of direct labor hours in Department 1 and on the basis of machine
hours in Department 2. At the beginning of the year, the following estimates are provided:
Department 1 Department 2
Direct labor hours 640,000 128,000
Machine hours 16,000 192,000
Overhead cost $384,000 $1,152,000
Actual results reported by department and product during the year are as follows:
Department 1 Department 2
Direct labor hours 627,200 134,400
Machine hours 1 ...Read More

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