A company uses machine hours to allocate overhead. The company has the practical capacity to use 100,000
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A company uses machine hours to allocate overhead. The company has the practical capacity to use 100,000 machine hours. The fixed overhead is expected to be $1 million and the expected usage of machine hours is 70,000.
What is the application rate for fixed overhead if the company uses practical capacity as the allocation base? What proportion of fixed overhead is likely to be allocated?
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Related Book For 
Management Accounting In A Dynamic Environment
ISBN: 9780415839020
1st Edition
Authors: Cheryl S McWatters, Jerold L Zimmerman
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