Shawls scarves total number of units expected to be

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The KnitWitt Corporation manufactures knitted shawls and scarves. The company expects to incur $1,500,000 in overhead costs during 2010. The following budget information is for 2010: Shawls Scarves Total Number of units expected to be produced 50,000 100,000 150,000 Direct labor Hours 250,000 800,000 1,050,000 Machine hours 100,000 80,000 180,000 If the company uses machine hours as the cost driver, what will be the allocation rate for 2010? $1.43 per machine hour $10 per machine hour $8.33 per machine hour $1.88 per machine hour.

Reference no: EM13566270

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