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Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic. Required 1. Compute a single plant wide overhead rate assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2015 the Deluxe model required 2,500 direct labor hours, and the Standard model required 6,000 direct labor hours. Assign overhead costs to each model using the single plant wide overhead rate.
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