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6. Calculating predetermined factory overhead rates and recording journal entries Curtain Company produces a line of products that require a significant amount of factory overhead.
6. Calculating predetermined factory overhead rates and recording journal entries Curtain Company produces a line of products that require a significant amount of factory overhead. The company's controller has accumulated data to evaluate the effects of using different bases to apply factory overhead to production. The data suggest that the total factory overhead costs for the upcoming year will be $3,000,000. The controller also expects that there will be 152,000 estimated direct labor hours, 74,000 machine hours, and direct labor cost of $1,850,000 in the upcoming year. What is the predetermined overhead rate for Curtain Company, based on direct labor hours? O $13.78 per direct labor hour O $40.54 per direct labor hour O $30.14 per direct labor hour O $19.74 per direct labor hour What is the predetermined overhead rate for Curtain Company, based on machine hours? O $30.14 per machine hour O $40.54 per machine hour O $13.78 per machine hour O $19.74 per machine hour What is the predetermined overhead rate for Curtain Company, based on direct labor cost? O $3.24 per direct labor dollar (or 324% of direct labor cost) O $1.62 per direct labor dollar (or 162% of direct labor cost) O $0.81 per direct labor dollar (or 81% of direct labor cost) O $12.17 per direct labor dollar (or 1,217% of direct labor cost) Aa Aa E
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