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astra-53 [7]
3 years ago
11

Case company allocates $5 overhead to each unit produced. the company uses a plantwide overhead rate with machine hours as the a

llocation base. given the amounts below, how many machine hours does the company expect in department 2?
Business
1 answer:
posledela3 years ago
6 0

Let Department 2 Machine hours Be x, and using the equation below. 

<span>Find  ATQ : </span>

<span>          5= (440000 + 245000) / (74000 + x)</span>

          => 370000 + 5x = 685000

          =>x = 63000

 

Therefore, there are 63,000 machine hours that the company expects in Department 2.

<span> </span>

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