Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2

$67.50 per hour

Explanation:

Setup Cost = $312,500

Transportation Cost = $10,000

Direct Labor cost $25,500

Modification of machine cost $12,000

Insurance of Factory Premises $28,000

Raw material Cost $118,250

Machine hours = 7,500 hours

labor hours = 3,500  hours

Total manufacturing Overheads = $506,250 / 7,500 = $67.5 per hours

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !

answer the law of increasing costs;