A manufacturer has the following budgeted data for its two production departments: Budgeted Data Assembly Finishing Overhead cost $ 2,400,000 $ 1,600,000 Direct labor hours 24,000 direct labor hours 40,000 direct labor hours Machine hours 8,000 machine hours 32,000 machine hours The Assembly department overhead rate using direct labor hours is $167 per direct labor hour. True or False?

A manufacturer has the following budgeted data for its two production departments: Budgeted Data Assembly Finishing Overhead cost $ 2,400,000 $ 1,600,000 Direct labor hours 24,000 direct labor hours 40,000 direct labor hours Machine hours 8,000 machine hours 32,000 machine hours The Assembly department overhead rate using direct labor hours is $167 per direct labor hour. True or False?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Budgeted Data	Assembly	Finishing
Overhead cost	$ 2,400,000		$ 1,600,000
Direct labor hours	24,000	direct labor hours	40,000	direct labor hours
Machine hours	8,000	machine hours	32,000	machine hours

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