The normal capacity of a manufacturing plant is 7,500 units per month. Fixed overhead at this volume

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The normal capacity of a manufacturing plant is 7,500 units per month. Fixed overhead at this volume is $10,000, and variable overhead is $15,000. Additional data follow:

The normal capacity of a manufacturing plant is 7,500 units

a. Calculate the amount of factory overhead allowed for the actual levels of production.
b. Compute the overhead application rate per unit at the various levels of production. (Round to the nearest wholecent.)

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Principles of Cost Accounting

ISBN: 978-1133187868

16th edition

Authors: Edward J. Vanderbeck

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