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Accounting

Problem:

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000.

Required:

Question: If a product requires 8,000 machine hours, how much manufacturing overhead will be allocated to this product?

A) $41,667

B) $43,750

C) $1,120

D) $50,000

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167223

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