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how would i solve this? Pharoah Company produces one product, a putter called GO-Putter. Pharoah uses a standard cost system and determines that it should
how would i solve this?
Pharoah Company produces one product, a putter called GO-Putter. Pharoah uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 130,000 units per year. The total budgeted overhead at normal capacity is $1,170,000 comprised of $390,000 of variable costs and $780,000 of fixed costs. Pharoah applies overhead on the basis of direct labor hours. During the current year, Pharoah produced 79,100 putters, worked 82,500 direct labor hours, and incurred variable overhead costs of $142,380 and fixed overhead costs of $660,900. (a) Compute the predetermined variable overhead rate and the predetermined fuxed overhead rate. (Round answers to 2 decimal places, es. 2.75.) Step by Step Solution
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