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2. BB Co. uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated
2. BB Co. uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials Direct labour Sales commissions Salary production supervisor Indirect materials advertising Rent-factory $10,000 30,000 40,000 20,000 4,000 8,000 10,000 BB Co. estimates that10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? Indirect materials a) $3.40 b) Direct Labourt $6.80. c) $6.40. - 10,000 $8.20. 3.40
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