Ratchford Clocks manufactures alarm clocks and wall clocks and allocates overhead based on direct labor hour. The production process is set up in three departments: assembly, finishing, and calibrating. The following is information regarding the direct labor used to produce one unit of the two clocks:
The budget includes the following factory overhead by department:
Ratchford Clocks is planning to manufacture 50,000 alarm clocks and 10,000 wall clocks.
Correct Answer:
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