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November 24, 2014

Homework Help: accounting

Posted by Sara on Thursday, May 31, 2012 at 1:30pm.

. Making Product X requires 4,000 hours of labor and Product Y requires 6,000 hours of labor. TUV undertakes an automation program that reduces the consumption of labor required by Product Y to only 2,000 hours of labor. Product X is not affected by the automation process. Overhead cost prior to the automation totaled $20,000. After automation, overhead cost amounted to $24,000. Assuming TUV used direct labor hours as a company-wide allocation base both before and after the automation, the amount of overhead cost allocated to:

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