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A factory makes 500,000 shirts and 1,000,000 pants. Direct materials are \$3,500,000 and \$2,000,000 for pants...

Question

A factory makes 500,000 shirts and 1,000,000 pants. Direct materials are \$3,500,000 and \$2,000,000 for pants...

A factory makes 500,000 shirts and 1,000,000 pants. Direct materials are \$3,500,000 and \$2,000,000 for pants and shirts, respectively. Direct Labor is \$1,300,000 and \$500,000 for pants and shirts, respectively. Factory overhead is \$4,200,000. The firm pays \$20 per hour. The allocation base is direct labor hours. Required: derive the unit costs for a pair of pants and a shirt.

OH Cost OH Rate Total Allocation Base Allocation | Allocated Base Used | OH Object By Object II | Allocation Base Used By Object Allocated OH Object

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