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Question
Selected information from the budget of the Khalid Corp. at the beginning of the year follows:
| Estimated factory overhead | $132,000 | |
| Estimated direct labor hours | 55,000 | hours |
| Estimated machine hours | 41,250 | hours |
| Estimated direct labor cost | $825,000 | |
| Actual factory overhead | ||
| incurred during the year | $144,000 |
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(A. Direct labor hours.
(B. Direct labor cost.
(C. Machine hours.
Answer
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Q:
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