Question: I am confused on how to do this problem, is this a break even problem? I am confused on how to get to an answer
I am confused on how to do this problem, is this a break even problem? I am confused on how to get to an answer in this problem.
Mr. Robbins's detailed medical records indicated that a total of 20 labor hours were directly used in providing his care. The cost of the labor was $380. It was expected before the beginning of the year that a total of 90,000 direct labor hours would be consumed by the health care organization's patients, at a cost of $1,350,000. The total overhead to be allocated to patients was expected to be $810,000. Determine the overhead to be assigned to Mr. Robbins based on the data given. Solve this problem in two ways: First, assign overhead on the basis of direct labor hours; and second, assign overhead on the basis of direct labor cost. Why might your results differ? Determine the overhead to be assigned to Mr. Robins based on the data given. Solve
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