Solution-How do include the overhead costs in the cost of

How do include the overhead costs in the cost of each table

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Reference no: EM132953927

Imagine a business which makes handmade tables and chairs Each table has the following direct costs (easy to calculate):

Direct material: 4 sq. metres of wood @ $10 per sq. metre = $40

Direct labour: 1.5 hrs @ $30 per hr = $45

It also budgets for manufacturing overhead costs per month of $5,000

Problem 1: How do we include these overhead costs in the cost of each table (using one plant-wide rate)?

Reference no: EM132953927

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How do include the overhead costs in the cost of each table

Reference no: EM132953927

Reference no: EM132953927

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