The total fixed cost to support a product in production by the supervisor, QC, Material handler etc.
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Question:
The total fixed cost to support a product in production by the supervisor, QC, Material handler etc. is $350,000 per year. The product they support the production of has an output of 150,000 per year. standard time per unit to produce is 0.75 minutes. at a material cost of $1.20 per unit.
What is the cost of the product using two different overhead allocation methods?
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