In a shipping department, the indirect costs are to be allocated using machine hours as the cost driver. The shipping de
Posted: Fri Jul 01, 2022 8:51 am
In a shipping department, the indirect costs are to be allocatedusing machine hours as the cost driver. The shipping department’stotal indirect costs = $300,000 and it expects to use 25,000machine hours for the period. If product X needs 2,000 machinehours, how much will it be allocated the shipping department’sindirect cost? Show your calculation.