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Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $220,000, direct labor hours
Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000.
If the PDOH rate uses machine hours as the cost driver, what is the total amount credited to the overhead account control account?
a. | $240,000 | |
b. | $165,000 | |
c. | $215,000 | |
d. | $135,000 |
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