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Jaxon Ltd currently allocates overhead costs based on direct labour hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020:
Jaxon Ltd currently allocates overhead costs based on direct labour hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020: total overhead $1,050,000; total labour cost $1,680,000; total machine hours 60,000 MH; and total direct labour hours 210,000 DLH.
What would be the OH rate if Jaxon Ltd used machine hours to allocate OH costs?
What would be the OH rate if Jaxon Ltd used machine hours to allocate OH costs?
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Managerial Accounting
Authors: Karen Braun, Wendy Tietz, Louis Beaubien
4th Canadian Edition
013544344X, 9780135443446
