Roseville Engineering provides watershed and design services for its customers.Total overhead costs this coming year are expected to be $8,000,000 ($2,000,000 in the Watershed Department,and $6,000,000 in the Design Department).If the company chooses to use the plantwide approach,overhead will be allocated using direct labor costs.Direct labor costs are expected to total $4,000,000.The Watershed Department expects to incur direct labor costs of $500,000,and the Design Department expects to work 120,000 direct labor hours.
Correct Answer:
Verified
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