FINANCIAL ACCOUNTING-W/SOLN.MANUAL
14th Edition
ISBN: 9781285477978
Author: Weil
Publisher: CENGAGE L
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General accounting
Subject. General Account
Bradford Manufacturing has two products: X and Y. The annual production and sales
of Product X is 2,000 units and of Product Y is 1,400 units. The company uses direct
labor-hours as the basis for applying all manufacturing overhead to products.
•
•
Product X requires 0.5 direct labor-hours per unit,
Product Y requires 0.8 direct labor-hours per unit,
The predetermined overhead rate is $72.00 per direct labor-hour.
What is the amount of overhead cost that will be allocated to each unit of Product Y?
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