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Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.
At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: How much manufacturing overhead will be allocated to running apparel? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
Output
Output usually refers to the total amount of goods and services produced by a company, industry, or economy within a specific period.
Total Revenue
The full amount of income generated by the sale of goods or services by a company before any costs or expenses are subtracted.
ATC
Average Total Cost, which is calculated by dividing the total cost of production by the quantity of output produced. It includes both fixed and variable costs.
MC
Marginal Cost, which refers to the increase or decrease in the total cost of production when the output is adjusted by one additional unit.
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