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I am looking for help with Overhead Allocation rates, based on direct labor hours, direct labor cost, and machine time. Question: If a company expects
I am looking for help with Overhead Allocation rates, based on direct labor hours, direct labor cost, and machine time.
Question: If a company expects annual overhead to be $300,000 ---- it also expects 30,000 direct labor hours costing $375,000 --- and machine run time of 10,000 hours.
What would the Predetermined overhead allocations be for Direct labor hours, Direct labor cost, and Machine time?? How is this problem set up and answered?
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