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

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The Shimano Company allocates manufacturing overhead to production based on direct labor hours. The following information is available for Shimano:

Estimated manufacturing overhead$403,200
Actual manufacturing overhead $378,000
Estimated direct labor hours 21,000
Actual direct labor hours 20,000

a. Compute Shimano's overhead application rate.
b. Assuming that Shimano's overhead application rate is $19, calculate the amount of overhead that should be allocated to production.


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