Reference: 17_01
Kudzu Company Sells Two Products Big X and Little

question 18

True/False

Reference: 17_01
Kudzu Company sells two products Big X and Little X. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $525,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 16,000 units of Big X and 18,000 units of Little X next year.
$\begin{array}{|c|c|c|}\hline & \begin{array}{l}\text { Direct } \\\text { Material } \\\text { per Unit }\end{array} & \begin{array}{c}\text { Direct } \\\text { Labor Dollars } \\\text { per Unit }\end{array} \\\hline \operatorname{Big} X & \$5 & \$ 20 \\\hline \text { Little X } &\$3 & \$ 10 \\\hline\end{array}$

-Kudzu has 34,000 total estimated direct labor hours for next year.

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Definitions:

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or the entire planet, crucial for ecological balance and resilience.

Non-native Species

Organisms that have been introduced into an environment where they are not historically found, often causing disruption to local ecosystems.

Environmental Disturbances

Events or changes that disrupt ecosystem, community, or population structures, potentially leading to significant alterations in habitat or biodiversity.