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A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred direct materials costs of $6,000 and direct
A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred direct materials costs of $6,000 and direct labor costs of $2,000. Factory overhead applied to this job uses a predetermined overhead rate of 150% of the direct materials cost. What is the cost per bike?
a. $85
b. $55
c. $65
d. $95
e. $75
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