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Jaime Inc. manufactures sweaters and jackets. The company estimated its overhead in the order-processing department to be $180,000. They produce 50,000 sweaters and 80,000 jackets each year. Sweater production requires 25,000 machine hours, jacket production requires 50,000 machine hours. Each month Jaime places 2 raw materials orders for sweaters and 8 for jackets. Using orders placed as a cost driver, how much of the order processing overhead is allocated to jackets?

A) 90,000

b) 120,000

c) 110,770

d) 144,000

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  • Category:- Accounting Basics
  • Reference No.:- M9437623

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