Question: Leather Jackets Requires 200 new design resources. 20,000 units ordered with 400 separate orders. Each jacket requires 40 minutes of machinetime for a total of
Leather Jackets Requires 200 new design resources. 20,000 units ordered with 400 separate orders. Each jacket requires 40 minutes of machinetime for a total of 12,000 machine-hours. Denim Jeans Requires new design resources. 300 separate orders. 100 custom designs prepared. 1,000 jeans, requiring 2 machine-hours each for a total of 2,000 machine-hours. Activity rates are: Customer order $ 300 per order, product design $550 per design and order size 40 per machine hours. You are required to calculate overhead cost to products.
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