Spokesman Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine

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Spokesman Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each hike. Estimated costs and expenses for the coming year follow:

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Required:

1. Determine the predetermined overhead rate per direct labor hour if the average direct labor rate is \($12\) per hour.

2. Determine the amount of applied overhead if 18,500 hours are worked in the upcoming year.

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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