Question: A division of Hewlett - Packard assembles and tests printed circuit ( PC ) boards. The division has many different products. Some are high volume;

A division of Hewlett-Packard assembles and tests printed circuit (PC) boards. The division has
many different products. Some are high volume; others are low volume. For years, manufacturing
overhead was applied to products using a single overhead rate based on direct-labor dollars. However,
direct labor has shrunk to 6% of total manufacturing costs.

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