How much overhead is applied to each product?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am.203.
Transcribed Image Text:Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000
in overhead, and inspection, with $25,000 in overhead. Poly is estimated to have 750,000 setups and 170,000
inspections, while silk has 250,000 setups and 80,000 inspections. How much overhead is applied to each product?
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