Mexican Spices Company makes two types of salsa, hot and mild. Information for the two flavors appears
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Question:
Hot | Mild | |
Sales | $400,000 | $600,000 |
Direct materials | $100,000 | $200,000 |
Direct labor | $50,000 | $150,000 |
Labor hours | 5,000 | 10,000 |
Mexican Spices incurred $240,000 in overhead costs for the period.
Assume that Mexican Spices allocates overhead cost to products based on the labor hours worked on each product. What is the overhead application rate?
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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