Lehighton Chalk Company
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HM8-32
Lehighton Chalk Company manufactures blackboard chalk for educational uses. The company’s product is sold by the box at $50 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton’s first two years of operation is as follows
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