3. The overhead cost for the order is computed as follows:
Volume
Related Order
Related Total
Activity... 20 DLHs 1 order
Wages and salaries ... $120.00 $225.00 $345.00
Other overhead costs ... 30.00 25.00 55.00
Total cost ... $150.00 $250.00 $400.00
Example: 20 DLHs × $6.00 per DLH = $120.00
Activity rate for volume related wages and salaries from part (2) above.
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