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Question 1: Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 780,000 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated Dept 1 Dept 2
Manufacturing OH $3,143,500 $1,574,000
Direct LH 168,000 268,000
Machine Hours 268,000 193,000
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