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Assume XYZ Company has a cost pool that varies with the number of machine hours used in production and another cost pool that varies with
Assume XYZ Company has a cost pool that varies with the number of machine hours used in production and another cost pool that varies with the number of production runs used during the period. They estimate machine-related costs at $500,000 for the period and believe that 50,000 machine hours will be used. They also estimate production-run costs at $400,000 for the period with 400 expected production runs.
What are the predetermined overhead rates?
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