Kay Companys formula for annual manufacturing overhead is: Y = ($120,000) + ($10X), where x is direct
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Kay Company’s formula for annual manufacturing overhead is:
Y = \($120,000\) + \($10X\), where x is direct labor dollars The predicted activity for 2017 is 50,000 direct labor hours and the actual activity for January of 2017 was 4,000 direct labor hours. Using a predetermined overhead rate the applied January overhead is:
a. $40,000
b. $49,600
c. $160,000
d. $169,600
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