Problem regarding the machining and inspection

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Reference no: EM13987517

Suppose that the overhead costs are divided between two activities as follows:

Machining             $632,000

Inspection               360,000

Required:

1. Calculate predetermined overhead rates for the two activities, machining and inspection.

2. Suppose a job used 4,000 machine hours and 800 inspection hours. If the job size is 8,000 units, what is the overhead cost per unit?

Reference no: EM13987517

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