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(Solution Download) 4. Smith Company makes golf balls and baseballs. Making golf balls requires 5,000 hours of labor and

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4. Smith Company makes golf balls and baseballs. Making golf balls requires 5,000 hours of labor and making baseballs requires 8,000 hours of labor. Smith undertakes an automation process that reduces the consumption of labor required for baseballs to only 2,000 hours of labor. Overhead cost prior to the automation totaled $15,000. After automation, overhead cost amounted to $25,000. Assuming Smith uses direct labor as a company-wide allocate base before and after automation, what is the amount of overhead cost allocated to each product?

 







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This question was answered on: Oct 24, 2017

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