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Determine the amount of overhead to be allocated

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Reference no: EM132633355

A company manufactures Product X and Product Y in the same factory. Overhead costs are currently allocated using direct labor hours, but the accounting manager has recommended an activity-based costing system using the data in the table provided below.

Answer the following two questions:

Problem a) determine the amount of overhead to be allocated to each type of product under activity-based costing;

Problem b) determine the amount of overhead to be allocated to each type of product using labor hours as the allocation base. Assume 60,000 labor hours were used to manufacture Product X and 20,000 labor hours were used to manufacture Product Y.

Reference no: EM132633355

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