Question: Assume Beatrice, Inc., uses three allocation bases to allocate overhead costs from departments to jobs: number of different parts, number of machine hours, and number
Assume Beatrice, Inc., uses three allocation bases to allocate overhead costs from departments to jobs: number of different parts, number of machine hours, and number of job setup hours. The information needed to compute the allocation rates follows:
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Job CLK430 required the following activities:
Department X: 10 parts, 1,000 machine hours, 20 setup hours.
Department Y: 4 parts, 400 machine hours, 10 setup hours.
Allocate overhead costs to JobCLK430.
Department X Department Y Costs Units of ActivityCosts Units of Activity 40 Parts 1,600 10 Parts $208,000 32,000 Hours 60,000 3,000 Hours S 24,000 300 Hours 8,000 100 Hours 8,000 1. Number of Different Parts 2. Number of Machine Hours Worked... 3. Number of Hours to Set Up Jobs. ..S
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