Acer Limited has several production departments. The assembly department it has been estimated that RM375,000 of...

   

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Acer Limited has several production departments. The assembly department it has been estimated that RM375,000 of overhead should be charged to that particular department. These are charges to a customer: Number of Units Direct material cost Direct labor cost Prime cost Direct hours Machine hours labor Assembly Department 80,000 700,000 2,275,000 2,750,000 375,000 75,000 Specific Unit a. Specific units b. Percentage of direct material cost. c. Percentage of direct labor unit. d. Percentage of prime cost. e. Direct labor hours. f. Machine hours. 8.00 30.00 40.00 3.50 0.75 The account is not sure which overhead absorption rate to adapt. Required: Calculate the overhead to be absorbed by a specific unit passing through the assembly department using each of the following overhead absorption rates methods. Acer Limited has several production departments. The assembly department it has been estimated that RM375,000 of overhead should be charged to that particular department. These are charges to a customer: Number of Units Direct material cost Direct labor cost Prime cost Direct hours Machine hours labor Assembly Department 80,000 700,000 2,275,000 2,750,000 375,000 75,000 Specific Unit a. Specific units b. Percentage of direct material cost. c. Percentage of direct labor unit. d. Percentage of prime cost. e. Direct labor hours. f. Machine hours. 8.00 30.00 40.00 3.50 0.75 The account is not sure which overhead absorption rate to adapt. Required: Calculate the overhead to be absorbed by a specific unit passing through the assembly department using each of the following overhead absorption rates methods.

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a Overhead absorption rate based on units 375000 80000 Total overheads Total units Overhead absorpti... View the full answer