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What is the overhead from process a to be applied

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Reference no: EM132692516

Problem 1: Bottlefish Pty Ltd produces a range of products through several processes. Total overhead costs for process A are $200,000 and overhead is allocated to units of product on the basis of $5 of overhead for each hour of direct labour employed. If 4,000 units of product D pass through process A, requiring 1,500 direct labour hours, what is the overhead from process A to be applied to product D?

a) $7,500
b) $13,333
c) $20,000
d) $26,667

Reference no: EM132692516

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