Lionel Corporation manufactures two products,Product B and Product H.Product H is of fairly recent origin,having been developed as an attempt to enter a market closely related to that of ProductB.Product H is produced on an automated production line.
Overhead is currently assigned to the products on the basis of direct labour-hours.The company estimated it would incur a total of $450,000 in manufacturing overhead costs and produce 7,500 units of Product H and 30,000 units of Product B during the current year.Unit costs for materials and direct labour are:
B.Product H is the more complex of the two products,requiring two hours of direct labour time per unit to manufacture compared to one hour of direct labour time for Product
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a.Compute the predetermined ...
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