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Anthony Inc. manufactures motorcycles. The company estimates the following for 2021: Fixed manufacturing overhead $2,040,000 Direct labour hours 60,000 Direct labour costs $2,400,000 Machine hours
Anthony Inc. manufactures motorcycles. The company estimates the following for 2021: Fixed manufacturing overhead $2,040,000 Direct labour hours 60,000 Direct labour costs $2,400,000 Machine hours 50,000 Using the above information answer the questions which follow. If the company uses direct labour hours as the cost driver, what is the fixed manufacturing overhead allocation rate, also called the application rate? A If the company uses direct labour costs as the cost driver, what is the fixed manufacturing overhead allocation rate, also called the application rate
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