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(Solved) (Latest ver. Aug 2020) - Overhead allocation

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Q1.
"The more the better!" Was a comment made by the CEO of a major company when asked about allocation of sales, general, and administrative costs to products. Do you agree? Explain.

Q2.
Suppose a company uses machine hours as a cost-allocation base for factory overhead. How does the company compute a budgeted overhead application rate? How does it compute the amounts of factory overhead applied to a particular job? Explain.

 







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This question was answered on: Sep 16, 2020

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