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Allain Inc. manufactures two products, sweat suits and jeans. The company has estimated its overhead in the order-processing department to be...
Allain Inc. manufactures two products, sweat suits and jeans. The company has estimated its overhead in the order-processing department to be $240,000. The company produces 50,000 sweat suits and 80,000 jeans each year. Sweat suit production requires 25,000 machine hours, jeans production requires 50,000 machine hours. The company places raw materials orders 10 times per month, 2 times for raw materials for sweat suits and the remainder for raw materials for jeans. How much of the order processing overhead should be allocated to jeans