Breeden Security Inc B - Solution To Question #2

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Breeden Security, Inc (B)

DL Overhead OH Rate=OH/DL

Fabrication 27500 19000 0.690909091

Assembly 22500 12000 0.533333333

Pack & Ship 6000 21000 3.5

We used the following formula for the Overhead rates budgeted cost/budgeted volume. On the other
hand overhead rates for fabrication, assembly, and packing & shipping as illustrated in the table above.

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