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

Question - Kelly Technology makes home office furniture from fine hardwoods. The company operates two
departments, the preparation department and the fabrication department. Overhead costs are applied
to jobs from each department, using machine hours as the activity level for the preparation
department and direct labor hours as the activity level for the fabrication department. At the beginning
of 2008, the company's management made the following estimates: Preparation Department
Fabrication Department Overhead cost $432,000 $702,000 Machine hours 90,000 25,000 Direct labor
hours 35,000 65,000 In April, Kelly began working on Project 10. Project 10, which was completed in
May, consisted of 100 units. The company's cost records show the followin ...Read More

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