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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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Related questions
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