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If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct
If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:
a. | $1.33 is the predetermined overhead rate. |
b. | for every dollar of manufacturing overhead, 75 cents of direct labor will be assigned. |
c. | for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned. |
d. | a predetermined overhead rate cannot be determined. |
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