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Jordan company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs
Jordan company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Supervision of direct labor $320,000 Cost driver Direct labor-hours Activity level 800,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent $200,000 Square feet of area 100,000 Total overhead costs $640,000 If Jordan company uses the three activity cost pools to allocate overhead costs, what is the activity-cost driver rate for machine maintenance Select one: Oa. $0.125 per machine maintenance hour Ob. $0.025 per machine maintenance hour Oc Od $1.20 per machine maintenance hour 50.05 per machine maintenance hour
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