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Manufacturing Overhead Is Charged to Three Operating Divisions on the Basis

Question 154

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Manufacturing overhead is charged to three operating divisions on the basis of capital investment in the three divisions. If the investment is $10.8 million in the Eastern Division, $8.4 million in the Southern Division, and $17.4 million in the Far Eastern Division, how should manufacturing overhead of $888 000 be allocated to the three divisions?

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Eastern : Southern : Far Eastern
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